private health insurance

    Cards (9)

    • 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