private health insurance

• DEFINE private health insurance: optional type of health insurance which people can have in addition to medicare in which members pay a premium in return for payment towards services that aren’t covered by medicare
• PHI rebate:

  • amount federal government contributes towards the cost of peoples private health insurance
  • depends how much one earns
  • those above certain income doesn't get any rebate
• lifetime health cover:

  • encourages ppl to get PHI earlier in life
  • once individual turns 30yo, cost of phi costs extra 2% each year individual doesn’t take up phi
• medicare levy surcharge

  • tax for those who don’t have phi and earn over certain amount
• age-based discount:

  insurers have an option for offering 18-29yo a discount of up to 10% hospital cover
• advantages of PHI:

  • able to choose doctor
  • lower waiting times
  • financial coverage in a wider range of service
• disadvantages of PHI:

  • cost of premiums can be expensive
  • may still be out of pocket expenses
  • must pay for services that were not claimed
  • policies can be hard to understand