Private Health Funds - Helping People Have More Financial Security
With the world becoming more obsessed with finances, Australia is no exception. Many people are eager to travel or migrate to the Land Down Under are now looking closely at public and private health funds in Australia to know how the system works to their benefit.
What is medical insurance in Australia like?
Medical insurance in Australia can be classified into two: (1) public health and (2) private funds. Public health funds are derived from public taxes and provide coverage for citizens. Taxes are at work in public medical facilities and clinics all over Australian territories as these institutions provide equipment, care, and medication. If an Australian gets sick, he or she may go to a public hospital and seek services for injuries or illnesses that may require hospitalization.
The next is private health funds. Australia citizens often get private health funding to attend any emergency or hospital care not covered by public health coverage. Individuals apply and pay for this coverage separately out of their own income.
Is it compulsory to seek private health funds if you are an Australian citizen?
Not really, but the government does encourage it. The Australian government has what is called a Medicare Levy Surcharge (MLS) to persuade more individuals to take out private health funds. Australia's MLS is applicable for taxpayers who are above specified wages, but do not have any private hospital coverage. If a person belongs to this category, a surcharge calculated at 1% of taxable income is added on top of the Medicare Levy originally pegged at 1.5%.
The government imposed this step to less dependency on public health system. In a nutshell, less dependency means more savings on the government's part. It also means having enough budget for future generations of children and older citizens who may have to depend on the public health system.
Why is it wise to go for private health funds in Australia?
Having enough expenses for medical emergencies is the prime motivator why individuals should go for private health funds. Australia has a great public health system, but there is nothing like being prepared to face any medical predicament. Hospital care and medicine could have been especially burdensome for an individual if he or she pays for it in its entity.
Having private medical coverage has helped save countless individuals from paying out-of-pocket costs or their own savings when emergencies suddenly occurred. It also helped many people stay away from obtaining high interest loans just to respond to emergency or hospital care.
Is medical travel insurance covered by medical insurance in Australia?
Travel insurance covers medical emergencies either one is traveling domestically or internationally. This is separate from the usual medical insurance in Australia. If a person takes out travel insurance and the individual suddenly suffers from a heart attack while in a foreign country, travel insurance coverage kicks in and helps the person.
Depending on the coverage, this insurance may pay medical or dental expenses, as well as injury and death while traveling. It could also cover emergency medical help and hospital care due to injury or sickness.
Since medical insurance in Australia is a big issue, consumers should be careful when choosing their insurance provider. They should also be wary in signing up on a coverage right away. Buyers must instead examine several offers and company backgrounds so they get the most out of their money on this deal.