10.2

• medicare is australias universal health insurance scheme that aims to provide access to affordable basic healthcare in the public health sector
• medicare is funded by the federal government and available to all australians
• doctors who accept the medicare benefit as a full payment use bulk billing, where there are no out-of-pocket expenses to the patient
• when doctors charge more than the schedule fee, the amount paid by the patient is known as out-of-pocket cost
• schedule fee is the amount set by the federal government for each medical service based on the amount that is thorugh to be reasonable
• medicare levy surcharge - additional 1-1.5% tax on high income earners who do not have private health insurance
• Medicare levy - 2% tax for all australian tax payers to fund medicare
• medicare advantages

  • reduced cost for essential medical services
  • available for all Australian citizens
• medicare disadvantages

  • no choice of doctor for in-hospital treatment
  • longer waiting lists for many treatments
• PBS is funded by the federal government and works to subsidise the cost of essential medications
• pruvate health insurance involes a member paying a premium in return for payment towards health-related costs not covered by medicare
• advantages of PHI

  • shorter waiting lists
  • choice of own doctor
  • offers more services
• disadvantages of PHI

  • expensive
  • difficult to understand the options/policies
• lifetime health cover:

  anyone who doesn’t have PHI before july 1st after their 31st birthday will pay an additional loading of 20% for each year over 30.

  • For example, a person who takes out PHI at age 40 will may 20% more (2% x 10 years) than someone who first takes out hospital cover at the age of 30. this encourages younger people to take up PHI
• private health rebate - aus government offering a refund to assist with the cost of PHI premiums

  • up to 30% depending on the income of the individual/family.
• aged-based discounts - offering young people a discount on premiums
• the PBS safety new ensures that people who spend a large amount of money on PBS medications receive additional financial support