Introduction to The Private and Public Health System in Australia (And The Role of Private Health Insurance)

ealthcare in Australia consists of both the private and public health care systems.

Public Healthcare System in Australia

The public health system is known as Medicare, and it is financed to some extent through an income tax levy of 2.5%, with the rest of the expenses coming from the general funds.

Under Medicare, Australians can easily get free treatment plan as public patients in public healthcare facilities; subsidized or free treatment by medical professionals and experts; free pathology tests and x-rays, and eye tests performed by opticians.

Private Healthcare in Australia

Private healthcare goes one step further than Medicare because it involves ancillary services and private hospitals and clinics such as dental care, physical rehabilitation, chiropractic care, and so forth. Having said that, private health insurance companies are considered to be more reliable when it comes to insurance procedures; a private company iSelect Australia is one good example in providing a fast process and affordable premiums.

The Role of Health Insurance Coverage

Health budget provides average Australians with accessibility to the private health system through the means of insurance coverage. Private medical health insurance gives benefits when it comes to an array of health services such as:

  • medical care as a non-public patient
  • coverage in private healthcare facilities
  • specialists’ and doctors’ fees for in-patient expenses
  • optical and dental care
  • treatments such as physical rehabilitation, chiropractic care, and psychology
  • natural therapies such as remedial massage, naturopathy, acupuncture

In combination with most of these services, private health insurance makes it possible for people to select the healthcare facility they want to go to and the health care professional they want to treat them. Additionally, it ensures shorter waiting periods and greater versatility in arranging surgical treatment.

Non-public health coverage is backed by the Australian Federal government through different means.

Insurance Coverage Rebate

The Australian Federal government currently provides a 30% refund on the particular cost of non-public health insurance to all Australians. This is applicable to both ancillary and hospital cover.

Senior citizens are provided higher discounts, with 60-70-year-olds qualified to apply for 35%, and over 70s qualified to apply for a 40% discount.

The Medicare Levy Surcharge

Higher income earners who don’t have hospital coverage should pay an extra 1% tax by means of the Medicare Levy Surcharge. This is actually over the standard 2.5% Medicare Levy that almost all taxpayers pay.

Lifetime Health Coverage

Lifetime Health Coverage is actually a Federal government project that motivates individuals to remove health insurance earlier in life. After joining when they turn 35, young individuals can easily secure the cheapest base rate premium. After this particular age, a loading of 3% is usually charged for a 12-month period without health coverage after age 35.

Medical health insurance comparison websites can certainly help you measure up different insurance policies from an array of the top Australian health budget, supplying you with the best option for your needs at no cost.


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