| How Do You Get The Best Health Insurance | | | | Anyone can claim the private health insurance |
| Cover in Australia? Follow These Easy Steps | | | | rebate if they are eligible for Medicare and have a |
| Step 1: Do you need private insurance? Every | | | | complying health insurance policy that provides |
| Australian is entitled to free treatment in a public | | | | hospital treatment, general treatment ('ancillary' or |
| hospital. Private health insurance can have the | | | | 'extras') cover or both. |
| following advantages: more freedom to choose | | | | The rebate can be 30%, 35% or 40% (as |
| your doctor, shorter waiting times for elective | | | | applicable) of the actual cost of premiums paid. |
| surgery and access to private hospitals. | | | | Therefore, the rebate will increase if there is any |
| Step 2: Compare products | | | | increase in the premium. |
| A key factor in choosing hospital insurance is | | | | In other words, you will get at least 30 cents |
| which private hospitals a particular fund lets you | | | | back for every dollar you spend on private health |
| use. It's also important to check restrictions that | | | | insurance. For example, if your premium is $2,000 |
| apply to the hospital cover you're considering. | | | | a year, you will get at least $600 back. If you are |
| Some funds restrict the overall cover for extras | | | | paying $1,000 you will get at least $300 back. |
| by combining the maximum limits. For example a | | | | Exclusions |
| fund may offer $400 worth of physiotherapy and | | | | Some new policies exclude a whole range of |
| chiropractic in a year instead of $400 for each. | | | | procedures, such as major eye surgery and |
| This restriction can mean very large differences in | | | | heart-related surgery. With exclusions like these it |
| how much you'll get back. | | | | is difficult to see how they will relieve pressure on |
| Step 3: Read the fine print | | | | public hospitals - in fact they might do the exact |
| Before signing up with any fund, read its brochure | | | | opposite. |
| and key features guide thoroughly. If there's | | | | Gap charges |
| anything about your entitlements that you don't | | | | Consumers are facing significant out-of-pocket |
| completely understand, write to the insurer and | | | | expenses that are not explained in advance. |
| get written answers to your questions before | | | | Recent research by the government showed this |
| you join. You should include a list of questions to | | | | to be on average $720 per in-patient procedure. |
| ask when you take out insurance, when you're | | | | And 21% of people did not know they would be |
| reviewing it and before you go into hospital. | | | | facing gap payments. In addition, 39% of those |
| Beware: Health funds often claim it's easy to | | | | who faced gap payments also faced a fund |
| switch. But switching can become stressful if | | | | excess, averaging $257. |
| things go wrong. | | | | Lifetime Health Cover has been an effective way |
| Private health insurance in Australia | | | | to encourage healthy younger people to take out |
| Private health insurance premiums are rising in | | | | private health insurance, but it also traps people in |
| Australia and consumers are finding their policies | | | | health fund products they no longer want. The |
| have hidden exclusions and high gaps. Health | | | | only fair and cost-effective mechanism for |
| insurance premiums are increasing but consumers | | | | ensuring equitable health care is the tax system. |
| are getting less for their money. Consumers are | | | | Any system that does not ensure available |
| being offered products that do not cover | | | | resources are used to produce the greatest |
| common surgical procedures. Consumers are not | | | | possible health benefit is ethically unacceptable. |
| always covered for what they think they are. | | | | Look out for: |
| Many consumers face unexpected high gap | | | | Policies that do not cover common surgical |
| payments when they attend a private hospital. | | | | procedures should not be offered. |
| Consumers sometimes face waiting periods if | | | | Informed financial consent where patients are to |
| they change funds | | | | be charged more than the Medicare and health |
| Private health insurance premiums here have | | | | refund rebate. |
| increased 33% since 2001 even though the | | | | Health funds should provide new and potential |
| Government promised stable premiums when it | | | | members with information explaining any |
| introduced the 30% rebate and Lifetime health | | | | exclusions in detail and a separate section in the |
| cover. | | | | membership application requiring the member's |
| 30% private health insurance rebate | | | | acknowledgment of the restrictions or exclusions |
| The Commonwealth Government provides a 30% | | | | applying to the product. |
| rebate on appropriate private health insurance | | | | Some health insurance policies just not worth it. |
| cover. There are higher rebates for older people: | | | | Review your health cover every year, especially if |
| 35% for people aged 65-69 years and 40% for | | | | you have a policy with exclusions, limitations, a |
| people aged 70 years and over. | | | | high excess or a co-payment. |