What Should Couples Look For When Taking Out Cheap Private Health Insurance?
There are many reasons why having private health insurance is a good idea for young couples. Private health insurance will give you the peace of mind knowing that you are covered for things you expect to go to hospital for, like having a baby or treating a medical condition. Being covered for common extras like optical and dental will ensure you can take care of the basics when you need to. Also the bonus of having to pay less for physio and remedial massage visits can also be a welcome relief when you need it.
* The price shown is per week and applies to a {LIFESTAGE} living in VIC. It excludes LHC loading and includes a Base Tier Government Rebate
| Extras services (when included on cover) |
|---|
| All extras benefits except as specified below. Waiting Period: 2 Months |
| Optical, home and domestic aids and medical aids. Waiting Period: 6 months |
| Major dental services (including full & partial dentures, orthodontics, crown & bridgework, endodontic services such as root canal, gold fillings, indirect restorations, surgical extractions of a tooth/teeth including wisdom teeth). Waiting Period: 12 Months |
| Health appliances including nebuliser pump, blood glucose monitor, pressure garments, sleep apnoea monitor, extremity pump, hearing aids, orthopaedic appliances (GMHBA approved), prostheses (GMHBA approved non-surgical), tens monitor, podiatry surgical procedures and orthotic appliances (foot). Waiting Period: 12 Months |
| Hospital services (when included on cover) |
|---|
| Accidents - bodily injuries resulting from accidents which occur after the date of joining GMHBA or upgrading to a higher cover. Waiting Period: No |
| Obstetrics and maternity. Waiting Period: 12 months |
| Pre-existing ailment, illness or condition (other than psychiatric, rehabilitation and palliative care). Waiting Period: 12 months |
| Any other benefit for hospital (or hospital substitution) treatment. Waiting Period: 2 months |
A pre-existing condition is one where signs or symptoms of your ailment, illness or condition, in the opinion of a medical practitioner appointed by GMHBA (not your own doctor), existed at any time during the six months preceding the day on which you purchased your hospital insurance or upgraded to a higher level of hospital cover and/or benefit entitlement.
A special waiting period applies to obtain benefits for hospital treatment for new members who have pre-existing conditions. The waiting period also applies to existing members who have recently upgraded their level of hospital cover. If the ailment, illness or condition is considered pre-existing:
New members
New members must wait 12 months for any hospital benefits (other than psychiatric, rehabilitation and palliative care).
Existing members (transferring or upgrading)
Members transferring/upgrading to a higher hospital cover must wait 12 months to get the higher hospital benefits (other than psychiatric, rehabilitation and palliative care).
Existing members (with at least 12 months membership)
Existing members with at least 12 months membership in total across their old and new cover are entitled to the lower benefits on their old cover.
Silver Hospital cover provides the same single room coverage as Gold Hospital, but co-payments of $100 per day up to a maximum of $700 per admission apply. Co-payments are not the same as hospital excess. Please note: Some private hospitals only have single rooms and co-payments will apply.
Co-payments do not apply.
There are two basic components to consider when it comes to health cover (even cheap health insurance) – hospital cover and extras cover. With most health care funds hospital cover takes care of accommodation costs, doctors' fees, theatre and medical expenses. Extras cover, on the other hand, provides insurance for services such as optical, dental, physiotherapy and more. The benefits you are entitled to will depend on the level of cover you choose.
If you find yourself in hospital for whatever reason having the right level of hospital cover will allow you to focus on the important things like taking care of yourself and your partner, instead of worrying about waiting lists, or having to come up with extra funds at a bad time.
It is also important to note that if you are approaching 30, now is the time to take advantage of private health insurance and lock down the lowest base rate premium under the government's Lifetime Health Cover program. With each passing year after 30, the government increases the loading by 2% if you don't have private cover. So even by having the cheapest health insurance policy you can help stop your premiums going up by 2% due to the lifetime health cover penalty even if you choose to upgrade you cover later in life (lifetime health cover will apply to your policy for 10 continuous years).
The current Medicare Levy threshold for couples is $180,000. That means if your combine incomes are over $180,000 and you do not have hospital cover you will be charge between 1% to 1.5% in extra tax from the Medicare Levy Surcharge. Often this means that having a cheap health insurance policy means you're out-of-pocket but a smaller amount than paying the additional tax!
The Federal Government Rebate for health insurance can also help reduce your cost of health cover substantially. The level of rebate you receive will be dependent on your annual pre-tax income and the age of the oldest member on the health insurance policy.
If you are planning to start a family bear in mind that most health funds impose a 12 month waiting period before you can access the benefits so it's no good waiting until you're pregnant before you look for appropriate cover. If you start your search some time before you think you will need the cover, there is a good chance that you will have already served out your waiting period and will be able to access the full benefits.
At Frank Health Insurance there are many health insurance policies you can choose from to suit your needs and budget. We make sure you are not paying too much for cover you do not need or do not have enough cover on the services you frequently use. We will help you choose the right cover for you.
