Do i need Private health insurance

Do I need Private health insurance?

Last month when me and my wife were checking our monthly income and expenses, my wife asked me one simple question “Do we need private health insurance?” My quick answer was “YES” then she asked me another question, we already have Medicare what’s the reason to have Private health insurance. Well I did not know the answer and was not so sure, so I did search on google, spoke with my friends and colleagues for their opinion and found the answer below:

Medicare System:

If you are permeant resident or citizen of Australia then you are eligible for Medicare. Medicare is government health system. Medicare card covers GP visiting fees, Kids vaccination, emergency medical service. In NSW, it does not cover ambulance while in QLD Ambulance is covered under Medicare.

In my search and investigation, I found many reasons to have and many reasons not to have private health insurance in Australia.

In Australia, if a person does not have private health insurance and earns more than $90K for single and $180K for family then they are liable to pay Medicare levy surcharge up to 1.5% of your total income. So, it is better to have private insurance instead of paying Medicare levy surcharge.

If person in Australia do not get private health insurance before 1^st July following 31^st birthday and later (say at age of 35 years) if the person decides to take private health insurance the person needs to pay life time health cover loading. Currently it is 2%. So, if a person takes health insurance at age of 35 instead of 30 he/she needs to pay 10% (2% X 5 years) extra premium. Once you have paid life time loading for 10 years continuously and get remove from year 11.

After reading all this, I wanted to see is there any treatment difference if I have private or public health insurance. With my research, I found out below:

– On Medicare I must rely on Public Hospital. Medicare does not cover expenses for private hospital
– With Medicare I don’t have option to choose the doctor. With Private health insurance, I can choose doctor of my choice
– with Medicare I may need to share room with another patient. With private health insurance, I could have your own room
– With Medicare waiting time might be lengthy. With private health insurance waiting time is less and even i can get treatment straightaway if i go to private hospital
– I need to pay for Ambulance (NSW). Ambulance is covered under Private health insurance

If you require emergency medical treatment such as accident, Heart attack no matter you have Medicare or private health insurance. You will get treatment ASAP.
Now what about other services Such as Dental, Eye testing, Glasses etc.

Medicare does not cover dental. So, if I don’t have private health insurance and I need dental treatment (such as wisdom tooth removal) I need to pay from your pocket. But if I have private health insurance my health cover provider may pay full or partial depends on my cover.

Eye testing is covered under Medicare but Glasses are not covered. Most of the tests are covered under Medicare such as blood test, some X-ray.

After doing all this research I found answer of my question whether I need private health insurance or not. So I thought I share my experience and research with my friends like you.

Please note: I am not a financial adviser or health professional. So I am not giving you advise. My research may save your time and give you some idea so you must do your own research.

Please leave your experience with private health insurance, your thought or any comments you have.