Should I Have Bought Private Heath Insurance?

• 

  altomic on 06/02/2017 - 14:05

  +1

  I'm insured with my mum for around $35/month which I'm obviously paying. Am I an idiot?

  is your mum a dentist?

  • 

    BrewerHaHa on 06/02/2017 - 14:07

    Hahahaha I wish! Free dental treatment would be nice. Once my friend graduates Dent hopefully he'll hit me up with mates rates.

    • 

      MITM on 06/02/2017 - 18:53

      Please answer Atomic's question - what is this $35 insurance in you post ?

• 

  ESEMCE on 06/02/2017 - 14:09

  +1

  Sounds pretty high if it's just Extras cover which is all you need for Optical and Dental.

  Check out the policy document that you're currently covered for.
  If it's some sort of basic hospital, it's probably pretty useless. The bottom end plans are usually just designed to bypass the Lifetime Heathcover Loading which doesn't affect you yet.

  • 

    BrewerHaHa on 06/02/2017 - 14:14

    I'm still worried about the risk of me being hurt/injured accidentally in normal day to day (due to me being somewhat clumsy) and gym injuries. Is this still high?

    • 

      ESEMCE on 06/02/2017 - 15:03

      +1

      You need to look at what your policy covers.
      As a general Rule though, Low end plans don't cover you (at least not well) for day to day stuff.

      You'll be shunted into the Public System and your Private cover (after Excess) might pay some of the gaps not covered by Medicare if you're lucky.

• 

  PLA74 on 06/02/2017 - 14:14

  +3

  Is your income greater than $90k annually? If so and if you don't have private health insurace, you will be charged MLS in addition to the ML per my understanding.

  • 

    BrewerHaHa on 06/02/2017 - 14:17

    Nop, my income is below $90k/year

• 

  thatonethere on 06/02/2017 - 14:30

  +2

  There is a good buying guide here: https://www.choice.com.au/money/insurance/health/buying-guid…

• 

  mskeggs on 06/02/2017 - 14:42

  +21

  Health insurance is a poor financial choice for young, healthy people. That is why the government both subsidises the plans by 30% and uses a stick of extra tax if you don't have it, should your income exceed $90k.
  Insurance isn't a charity or gift giving process - they make a profit by charging you more than you will get in payments.

  Look at your policy documents to see what is covered, and for how much. You may be dismayed to discover after you pay $420 over a year, the maximum dental rebate is surprisingly low e.g. $300. And that might only be rebated at the rate of 50%, so you need to spend $600 on dental to get the $300 back.

  You mention concern over clumsiness (?) or gym injury. Medicare will cover 100% of doctor visit fees if you see a bulk billing doctor. It will also cover 100% of hospital charges if you have an accident.
  Private insurance is beneficial if you have a non-urgent injury (like knee or shoulder trouble) and you don't want to wait until the free public system will treat you. In these circumstances you can go to a private hospital, pay the steep bill, and get a portion refunded. But you could also put the $35 in the bank, and if you don't end up needing the hospital, you will still have the money.

  Private insurance in Australia is a disgrace, and the government should stop subsidising it and plow the $2billion+ it costs each year back into public health care.

  • 

    BrewerHaHa on 06/02/2017 - 15:00

    Thanks for your reply! I'll look into what's included in my policy tonight. I'm at work but thought this might be a good place to ask while I'm not doing too much

  • 

    MITM on 06/02/2017 - 18:56

    +3

    $2 billion will only buy 1 brand new hospital. Better off keeping people out of them.

    • 

      mskeggs on 06/02/2017 - 20:14

      +2

      Of course. $2b buys a lot of early intervention health care too.

• 

  EightImmortals on 06/02/2017 - 16:15

  $35 bux a month aint bad.

  We've never had private insurance as we've never seen the value of it. So we've paid for everything as we go and even including braces for the kids I still calculate we're way better off without it. If anything drastic happens we're covered under medicare anyway. So we'd have to share a room in a public hospital…big deal. I've heard scary stories from both private and public patients.

• 

  MercSal on 06/02/2017 - 16:42

  +1

  Every Australian already has insurance that they pay for, it's called Medicare. I really struggle to see the benefit for private health insurance as the care you receive in the public system will be at least as good (and better in some cases. Try getting a 'private' organ transplant) as anything in the private system. The 'benefits' seem mostly symbolic, like choice of doctor (I really don't have the skills to evaluate doctors while waiting for treatment). The only thing that might be useful is Ambulance, but if you need that more than once every few years, you have bigger issues.

  • 

    BrewerHaHa on 06/02/2017 - 16:47

    Medicare doesn't cover dental does it? I've learnt my insurance covers $750 of dental work/year+the other stuff (but I'm not 100% sure if I'll use it)

    • 

      MITM on 06/02/2017 - 19:02

      +1

      No dental via Medicare. Who is your Extras Cover with ?

      As you have dental cover within your extras policy, go and get a check up at a "members" dentist, which will cover most of the cost.
      And while your there, the dentist will give you an idea of what work you need to have done.
      Get the receptionist to write it all down for you - including the "item numbers" - i.e. a repair quote.
      Take your quote into your Health Fund office and ask them how much you'll get back if you went ahead.

      • 

        BrewerHaHa on 06/02/2017 - 22:12

        I have dental cover up to $750.

        Thanks everyone for your comments