5 Things to Look for When Choosing a Health Fund

Australia has a health care system that integrates both public and private health care services. Public health care is available to all citizens through medicare. Medicare covers essential medical services, such as doctor’s appointments and treatment in public hospitals. It also ensures all citizens have access to affordable medication.

Private health insurance is provided through health funds. Individuals can secure private coverage from an insurance company. This coverage will pay for the cost of an ambulance, private hospital services, and additional healthcare services. Although Medicare covers the cost of seeing your family doctor, it does not cover the cost of seeing other medical professionals, such as physiotherapists and chiropractors.

A health fund can ensure that you receive essential medical care affordably. It may also impact your taxation rate for your Medicare costs. The system is complex, which allows it to be customized for each individual. There are several important things to consider when choosing a health fund in order to ensure it addresses your personal needs.

1. Affordability

A tax of 2% is typically levied against taxable income to pay for Medicare in Australia. You may be charged a higher tax rate of 3.5% if you have a high income. You can avoid these fees by securing private health insurance through a health fund. It is important to determine whether you earn enough to be charged a higher Medicare tax rate if you do not have private health insurance, how much that rate would be, and the cost of private health insurance. Cheap health insurance is available. You can compare health funds with iSelect to determine the most affordable coverage that will meet your personal needs.

2. Your Hospital and Ambulance Coverage Needs

Health funds provide options for securing additional coverage for hospital fees not included with standard health coverage provided by the federal government. You may wish to ensure you have specific coverage included in your health insurance plan if you are starting a family, for example. You can also opt to secure ambulance coverage through your health fund. This means that you will not be charged if you have to be transported in an ambulance. You may not need this coverage if you live in a state or territory where ambulance coverage is provided by the government.

3. Special Medical Coverage Needs

Medicare does not cover a wide range of medical services. In the event that you need to purchase eyeglasses or get braces, you will need to cover those costs privately. Other services that are not covered include chiropractic treatment, dental care, speech therapy, and physiotherapy. The cost of in-home nursing care is not provided through Medicare, either. In order to choose the best health fund, it is important to understand what is not included with your existing medical coverage and what specific treatments you do need to be covered.

4. Your Age

Lifetime Health Cover refers to a special fee that people who do not secure private hospital insurance before the age of 30 must pay. You will be charged this fee unless you were overseas at the time you turned 31 or if you emigrated to Australia after the age of 30. Your premiums will increase by 2% for each year over the age of 30 that you did not have private hospital insurance. A person securing hospital insurance at the age of 31 would pay 2%. A person securing hospital insurance at the age of 35 would pay 10%.

5. Family Needs

Your family needs will change over time. You may opt to acquire coverage for orthodontics when your children are young in case they need braces. When your children are older, you will need to remove them from your coverage. You may also anticipate your medical needs based on your family’s medical history. You may have an increased risk of developing arthritis, for example. This may prompt you to add home nursing and physiotherapy to your coverage as you age to ensure you have access to these services if you need them.

A freelance writer with a BA in English from Sarah Lawrence College.