Hi all,
Most people have joined Private health insurance to avoid the Medicare Levy Surcharge.
However if you are low income or you have a Medicare levy exemption, is paying $3.5K per year (for family) for Private health insurance worth it?
Or is there better alternatives?
For example, if you have an unexpected injured or become seriously ill, would you just go straight to the hospital (public) emergency?
Or if you have an planned operation, would the cost of the operation be equivalent to paying for the Private health insurance premiums for a couple of years?
Does this suggest that Private health insurance is only beneficial for those who have serious illness?
I currently have Private health insurance but question the need to have one going fourth.
Also would like to know if there are any other better alternatives available, eg. Smile dental plan.
Thanks.
TL;DR Get it if you earn over 90k, under that it you'll have to decide whether you want to wait for surgery.
The main benefit of private health insurance is that you will get things faster. The public system rations out care, so if you needed a knee operation, you might need to wait 2 or 3 years because the public system will only provide so many operations a year, which is fewer than people need it. There are also things like glasses, dental, that sort of thing, which is generally not provided by the public system (except for people with the lowest incomes).
In the case of a car accident and the like there is no benefit to having private health insurance as all 'life saving' operations are done by the public system, the private system only covers non-life threatening operations.
If you earn above the cut off for the medicare levy surcharge, it is probably in your interest to get private health insurance as the tax is across your entire income, not just your marginal income, and the marginal cost (the difference between the insurance and the tax paid) will probably be much less than the value you derive from the cover.
Also, not quite related to your question but some people seem misinformed, hospital cover is provided by State Governments, not Medicare, which is provided by the Commonwealth Government. GPs receive their subsidies directly from the Commonwealth, whereas State Health Departments are run by the States (although the Commonwealth does provide some money directly to State Health Departments), so you can get very different levels of hospital services depending on which State you're in. I think WA has a somewhat 'gold-plated' service, which is on the higher level of 'care' for patients, but also very expensive. #boomtown