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 incentives

  • phi rebate
  • lifetime health cover
  • medicare levy surcharge
  • age-based discount
• PHI rebate

  • amount federal government contributes towards cost of peoples phi
  • depends how. much one earns
  • those above certain income = no 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 tto 10% hospital cover
• how does PHI show sustainability?

  • The various PHI incentive schemes increase the number of people who take up PHI and reduce reliance on the public healthcare system
  • Reduces strain on public system
  • Less people relying = more people can be treated sooner = improvements in overall health of the population now and in the future
  • More sustainable because it will continues to meet Australia’s healthcare needs
• how does PHI show access?

  • PHI enables people to have greater access to healthcare services not covered by Medicare
  • Waiting times for elective surgeries are shorter.
  • Waiting times for elective surgeries are quicker for everyone, as people in the public health system don’t have to wait as long when people are using the PHI
• how does PHI show equity?

  • PHI rebate demonstrates equity as low-income earners are entitled to a more significant rebate on the cost of their premium
  • Medicare levy surcharge only applies to higher-income earners who don’t take out PHI. Demonstrating equity as it relieves lower-income earners from paying this surcharge