How do you put a good health value? For many it is priceless. So much are you willing to pay to seek the best medical advice available?
Private health insurance is one of the lifestyles of all states face.
Do you go with the system and use the safety net of health care program of public health offers all Australians? Or search for extra security and choice offered by private health insurance?
Approximately one third of all adult Australians have private health insurance with industry valued at $ 5 billion a year.
But that figure is likely to increase. July 1 there have been changes in the cost of private medical care, and many people have rushed to take advantage of the savings.
The Federal Government initiative has been to try to increase the number of people covered by private insurance. The great fear is that as the population ages the public health system will not be able to cope with increases in the aging population brings pressure.
Baby Boomers, those born before 1964, constitute the largest segment of the population of Australia and demand for health services will increase considerably as they age.
Changes in the July 1 have meant increases in health care contributions if you are over 30. There is an impost 2 percent a year until they are 65 years of age, with the maximum impost that is based on a 65-year-old.
arrive early and no tax benefits are maintained.
For example, both a 65 year old and 75 year old both have a 70 percent impost. This only applies to medical coverage and no tax on the auxiliary cover. This provides an incentive for people under 30 to buy private health insurance and retain for life.
The premium is based on the age of registration. So if you join 35 which has a 10 percent charge that is retained for the duration of its cover.
Ricki Smith, Manager Corporate Relations with HBF says there are a number of benefits of private health insurance.
This includes choice of doctor, choice of hospital and location and timeliness.
“You can go to the hospital when you want and not have to wait,” she says.
“Some people think it is expensive and not realize that there is much to choose from. There are so many options that it becomes fairly cheap.”
Additional options often include room rates for hospital, dental, optical and physiotherapy benefits.
If you are in a higher salary bracket, for example, earning more than $ 50,000 a year as a single or more than $ 100,000 as a family, there is also a penalty if you do not have private health insurance.
A 1 percent higher Medicare levy to these income earners will cost over $ 1,000 a year. This is more than the cost of private health insurance.
Private health insurance buys peace of mind. But what if something goes wrong and you have a dispute with your insurance company.
The Private Health Insurance Ombudsman handles complaints regarding health funds.
They receive 2,000 complaints a year covering about $ 80 million in transactions. This ranges claims ranging from $ 50 for a few physiotherapy visits to $ 50,000 for a replacement multiple heart valve.
Norman Branson, Ombudsman for private health insurance says his role is to act as referee.
It is said that about half of the claims require the Ombudsman to take a specific action.
“The largest area is when someone thinks they are covered and which ultimately discover that they are not,” he said.
So if you’re in the market for private health insurance here are 10 tips to help you find your way through the variety of offer.
10 Tips for private health insurance
1. Figure out what you want to cover for – basic, hospital, dental, etc. optical
2. Contact a range of funds. Meet with them personally to discuss your needs.
3. Do not buy on price. The best price is not the determining factor. Look at the package and options available to suit your age and lifestyle.
4. Look for a product that suits their needs, for example, you can save a lot of money if you are willing to share a hospital room.
5. Look for a fund that has a good reputation for making statements in a timely manner.