What's The Benefit of Medicare?

mvbc85 on 22/08/2016 - 00:41

Hi everyone, I just recently became an Australian permanent resident.

I'm very grateful and extremely lucky for that. However, for years I believed that once I became a resident I would be paying less on my health insurance because I would be getting medicare and a policy for residents.

How wrong was I… not only are most policies that I find pretty much as expensive as my overseas one, but now I also will be paying a percentage of my income for Medicare. So now it looks like I'll be paying way more each year.

I don't mind paying for Medicare on my taxes and chip in for everyone else, that's part of what makes the country great. But is there any benefit (either financial or cover wise) in having medicare if you are also paying for private insurance?

Cheers

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Comments

  • spal on 22/08/2016 - 05:24

    If you have private health insurance hospital cover, Medicare pays 75% of the schedule, and the insurer pays the remaining 25%. Any fees charged above the Medicare schedule rates is your out of pocket expenses.
    Insurance extras cover pays for dental, optical, physio,etc., for which Medicare wouldn't reimburse you.

  • DarkOz on 22/08/2016 - 06:22
    +2

    Correct me if I am wrong. If you have private health cover you are exempted from paying the Medicare levy surcharge 1%-1.5% depending on your income. It's a big incentive.

    • ykwon10 on 22/08/2016 - 08:46
      +2

      If you earn above $90k pa.

      • daalinz on 23/08/2016 - 06:50

        180k per couple

  • CyberMurning on 22/08/2016 - 07:02
    +1

    His or her questions is what are the Medicare's benefit not private health benefits…

    • CyberMurning on 22/08/2016 - 07:07
      +3

      And Medicare is compulsory as well so you have no choice…

  • CyberMurning on 22/08/2016 - 07:04
    +1

    Have a read this

    What is covered by Medicare?
    http://privatehealth.gov.au/healthinsurance/whatiscovered/me…

    Don't worry about the link name it is NOT about private health cover, but tell you what things you get from Medicare.

  • lupiter on 22/08/2016 - 08:34
    +2

    But is there any benefit (either financial or cover wise) in having medicare if you are also paying for private insurance?

    I think you've got that the wrong way around. Everyone gets Medicare, and if you earn more you will be charged extra (if you earn only a very little, you can get extra benefits). Eisniwre's link is good for explaining what it covers. Take a look at most of the cheaper private health insurance and you'll find it doesn't cover much at all, it's basically just to avoid the medicare levy surcharge, and sometimes costs just the same as the MLS (which kicks in at 90k/yr for single or 180k/yr for family).

    The better sort of private health insurance can be useful. I once faced a 5 year waiting list for surgery, but with private insurance could get in within 6 months. On the other hand, if you're admitted through ER for surgery or have a baby sent to neonatal, private health insurance does basically nothing for you.

    The other thing most people use regularly is the PBS, which is amazing. Every time I see the non-PBS price for prescriptions I get, I'm shocked (last one was ~$300 down to $30).

    • airzone on 22/08/2016 - 08:46
      +2

      My wife is on a course of medication that costs $300 odd USD per box in the US, or $17 here.

  • airzone on 22/08/2016 - 08:43
    +7

    My family have made a few trips up to the ED for various things… My wife delivered 2 kids without having to pay for anything. I think I have only paid for one GP visit ever, and the rest have all been bulk billed. Recently I have been able to get home visits from GP's without payment. I believe PBS prices are only available if you have medicare (which is not always the best price however).

    The real question however is why do you have private health cover? There are some good reasons for it but you need to see if you'll be able to take advantage of one of those. You won't need it if you're worried about visiting the hospital in an emergency.

  • Hotpotcorn on 22/08/2016 - 10:15
    -7

    medicare isnt as great as you think。。。 medicare isnt free for everyone… if u are a high income earner you have to pay a medicare levy surcharge (2% of ur income which is actually significant….. therefore you are actually paying for your medicare service).. medicare is only free for low income earners…

    • niner on 22/08/2016 - 10:25
      +3

      Sounds okay to me. You want to be a scrooge and not help people who are less fortunate then go to Europe.

    • airzone on 22/08/2016 - 12:00
      +4

      Nobody ever said it was free. It's paid for by everyone who pays tax.

      Like roads. And schools. And police. And fire brigade.

    • bobbified on 22/08/2016 - 12:44

      What Zfan says is true. That is, it's not free.

      I look at the benefits that private health provides vs what medicare provides.
      The amount of money we pay to Private Health is much better off going into the public system.

  • inherentchoice on 22/08/2016 - 11:29
    +1

    Medicare keeps doctors in jobs?

  • mskeggs on 23/08/2016 - 07:19

    Be aware that approximately 8% of income taxes are directed toward public health. This is in addition to the medicare 'levy' that was established to promote GP bulk billing (bulk billing is the term for nil charge at the consultation).
    You have been paying for Medicare (public hospitals etc) as a visitor if you have been paying income tax but have been unable to access this without further payment.

    It would be wise to shop around for private health insurance. Generally speaking, if you have no chronic health conditions, extras cover (dental, optical and other non-hospital) will cost more than it pays out.
    Hospital cover brings the benefit of being able to avoid public waiting lists for non-urgent treatment, potentially have a private room and select the doctor you wish to treat you, but is still subject to private waits - for example, knee surgery may have a 12 month wait to get it 'for free' at the public hospital, but the private surgeon still has no slots available for 3 months.

    Urgent treatments will almost always be provided 'for free' by Medicare funded emergency departments, whether you have additional hospital insurance or not.
    Finally, consider if you are healthy and young, and have savings, you can also self insure. That is, put a few $1000 in an account incase you need non-urgent treatment. Should you then require it, you can decide whether to pay up front or wait for Medicare.

  • womble on 26/08/2016 - 23:28

    Some important points:

    Medicare is funded from federal government
    Your hospital and emergency department is funded by state government (example NSW Health) which have no relationship to federal government.

    So, your GP and specialists that you visit in their rooms are paid by you and medicare.
    Your public hospital visit is paid by the state government and has not really much to do with medicare at all.

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