Aged Parents "Lifetime Loading Health Insurance" - Recent Immigrants - Advice

grang on 28/06/2017 - 23:34

[Looking for helpful advice, not comments or views on immigration please]

Looking for some help for my parents, who recently immigrated to Australia.

They are aged (67 + 80) and in good health.

The were awarded a Parental visa where they paid an additional ~$40k each to the Australian government to cover things like medicare etc.

It took them a few years to sell their primary assets and then move to AU. We are taking out their private health insurance now that they are here.

It seems that even though they just moved here, because the visa was awarded March 2013 including medicare, they get the full 70% loading from age 30 (topped at 70%).

I would have thought it should count from the time you move… or worst case, count 2% per year from 2014 - 2017.

For the time they were offshore, they were fully insured in their country of residence. This seems to be a technicality and it seems unintended. They are quite distressed about the additional cost burden, being retired.

Anyone have advice / dealt with a similar situation

Health & Beauty

Comments

  • Stewardo on 28/06/2017 - 23:50

    If you are a new migrant to Australia your LHC base day will be the later of:

    1 July following your 31st birthday; or
    The first anniversary of the day you registered for full Medicare benefits.
    If you take out private health insurance hospital cover before your base day you will not have to pay a LHC loading on your cover. If you take out hospital cover after your base day you will have to pay a LHC loading of 2% for every year you are aged over 30.

    It probably won't help your parents but if you pay for ten years it resets, so not really lifetime.
    I agree it does seem unfair in this case.
    The whole thing is a bit unfair.

  • grang on 28/06/2017 - 23:58

    yep, that is the way I read that.
    you can get an extension if you were overseas during the anniversary, but that seems a one off for up to one more year….

  • [Deactivated] on 29/06/2017 - 01:35
    +1

    Welcome to the Australian Government. If your outside the average person, up or below their statistics your laughing if not your screwed and paying to run the country.

    • boomramada on 29/06/2017 - 09:52

      Still way better than American health system :)

      • Oz-Bogan on 29/06/2017 - 10:14

        Watch this space…………

  • edy4eva on 29/06/2017 - 01:45

    They don't need private health cover do they? if they're on medicare stick to that and save the cash from going to the insurance industry. Besides, they'll never to have to pay any loading.

    https://www.doineedhealthinsurance.com.au/

  • [Deactivated] on 29/06/2017 - 01:47

    Medicare goes a long long way… when you also consider GAP fees (extra money you have to fork out) with hospital admissions - plus private health insurance does not generally cover private consultations
    private health cover in Australia is no where near as comprehensive as other countries such as the USA or UK, it does not however severely penalise people for age, A 30 year old on the same plan pays the same as an 87 year old if there is no loading involved and pre-existing conditions do not preclude you being insured - just have to serve out the waiting period
    if you feel the need to do so i would suggest that you consider getting the cheapest insurance policy - a fully featured plan with the largest excess possible - so you can use it only if you need to. i would advise you check out the Australian government site
    http://www.privatehealth.gov.au/healthinsurance/ - unlike other commercial sites it compares every health insurance policy in Australia.

    I would also consider corporate plans - certains large companys, industrys and professional groups have corporate discounts and some have industry only funds for familys which might make things slightly more affordable. You might want to look at the shareholder discount with Medibank private (ie get your parents to buy shares to access the discount)

    • [Deactivated] on 29/06/2017 - 01:50

      and make sure your parents are not paying for coverage they dont need e,g, pregnancy and birth related services, assisted reproductive services

  • spal on 29/06/2017 - 05:22
    +1

    So, question is when they first registered for Medicare benefit? Call Medicare and explain yourself and they will send out a evidence of commencement of Medicare benefits. Unless your situation is your parents came in on grant of visa and completed Medicare registration process at that time itself.
    We were in the similar situation. I took insurance at around 15 months from arriving, ended up paying loading for 10 years. It hurts, but it applies for everyone.

    • grang on 29/06/2017 - 11:19

      ^^^^ This ^^^^

  • [Deactivated] on 29/06/2017 - 08:54

    I don't think you can avoid it and wouldn't stress about the unavoidable. The money spent offshore can't really count as standards vary, can't always be verified and ultimately didn't end up in a fund reducing the Aus taxpayer's medicare burden.

  • eapster on 29/06/2017 - 09:34
    +1

    I wouldn't bother about private cover if I were you. Medicare is good and as you said they are in good health.
    Just get extras cover for them so that they are covered for their teeth and eyes. This doesn't attract any loading..

  • Love a bargain on 29/06/2017 - 15:05
    +1

    Why not just get cover for extras (if your parents are likely to use enough to justify the cost) - don't think there is any loading on that - & leave the most expensive stuff to the public system (which is quick for serious issues but might require a lot of patience for non-urgent issues)?

  • try2bhelpful on 29/06/2017 - 16:10

    I agree that you shouldn't get the private health insurance. Often you end up with a lot of out of pocket expenses when you go private, but if you go public then most costs are covered. We have private cover in public hospitals; which is a low cost cover. If you have a good GP then he can get you timely access to a good specialist anyway. My understanding is the real gotcha with the public system is knee and hip replacement which can take a long time.

    • askme69 on 29/06/2017 - 23:02

      Get private health cover. Top shelf.

      not a bad setup, I get slugged additional medicare because I pay too much tax.

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