Daylight Saving Time in Australia: What You Need to Know
Daylight savings occur twice a year. Clocks go forward. Then they go back. And every time, people ask the same
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Planning a move to Australia? We’ll help you compare and apply for the right overseas visitors health insurance before you land, simple, fast and stress-free.
What Is Private Health Insurance?
Private health insurance covers services that Medicare doesn’t fully pay for. It helps reduce waiting times for elective surgery, lets you choose where you are treated and can even lower your tax if you earn above a certain income.
There are two main types of cover, hospital cover and extras cover. You can buy one or both depending on what you need. Hospital cover helps with costs when you are in hospital. Extras cover helps with services you use outside hospital like dental, optical and physiotherapy.
Many people think you must buy both but that’s not true. You can buy hospital cover with one insurer and extras with another. Some combined policies have both under one premium which can be convenient but isn’t always cheaper. Comparing both options is the best way to see what works for you.
What Is a Hospital Cover?
Hospital cover pays for treatment and accommodation in a private hospital. It can also pay for your choice of doctor and certain fees in public hospitals. It gives you the freedom to avoid long public waiting lists and choose when and where you have your procedure.
Hospital cover doesn’t pay for services outside hospital like scans or specialist consultations before or after surgery. Those are usually paid for by Medicare or out of pocket.
People who earn more than $101,000 a year as singles or $202,000 as couples may also save on tax with hospital cover. Without it they pay the Medicare Levy Surcharge. For some that makes hospital cover worth it even if they rarely need hospital treatment.There’s also an incentive to get cover before you turn 31. The Lifetime Health Cover loading adds 2% to your hospital premium for every year you delay after your 31st birthday. Waiting 10 years could mean paying 20% more for the same cover. Joining early prevents that extra cost.
What Is an Extras Cover?
Extras cover pays for services used outside hospital, sometimes called general or ancillary treatments. These include:
- Dental check-ups and fillings
- Glasses and contact lenses
- Physiotherapy or chiropractic sessions
- Massage or acupuncture
- Podiatry, hearing aids, and speech therapy
Each policy has an annual limit on how much you can claim. For example you might get up to $400 for dental and $200 for optical. After you hit your limit, you pay the rest yourself.
Extras cover doesn’t reduce your tax and doesn’t affect Lifetime Health Cover loading. Some people buy it for peace of mind but never use it. Reviewing how often you use extras each year helps decide whether to keep or cancel it.
What Is a Combined Cover?
Combined cover is hospital and extras in one policy. It can be easier since you only deal with one insurer and one bill. But it’s not always the best value.
Before you choose a combined cover, think about what you actually use. Someone who never goes to the dentist might not need extras while someone who exercises often and sees a physio might find extras worthwhile. Buying hospital and extras from different funds may sometimes be cheaper overall.
Hospital Cover Tiers Explained
All hospital cover in Australia is grouped into four tiers: Basic, Bronze, Silver and Gold. These help you compare policies across insurers.
- Basic covers the fewest treatments and is often used to avoid the Medicare Levy Surcharge or LHC loading.
- Bronze includes common procedures like ear, nose and throat surgery or joint reconstructions.
- Silver adds more complicated treatments such as heart and lung procedures.
- Gold covers each hospital service category including pregnancy, and cataract surgery.
Each tier must meet government standards but insurers can add extra benefits. That means two Silver policies might not include the same treatments. Comparing the details helps you make sure you’re getting value for what you pay.
