So why get private health cover? – Dr Geoff Wan

  • Because the government imposes tax penalties on you if you don’t. 
  • So that you can have the choice of coverage to a private hospital setting if you need to be hospitalised vs being put into a public hospital setting. 
  • And “extras” will save you money to offset the full expenses of optometrists, dentists, physiotherapists, chiropractors, etc. 

The way insurance works

Many subscribers pay for a few users. This is true for private hospital cover, not every insured person will need hospital services each year. However, some unfortunately chronically ill people will, but for the most of us, no.  This is why they are able to keep subscription fees reasonable vs the actual hospital fees, which can be in the tens of thousands of dollars. Normal people do not have that kind of money lying around to pay for a private hospital visit/stay, which is hardly ever planned. This makes sense.

When it comes to things that most subscribers will voluntarily use – dental, optical, physiotherapy, the coverage is average. The coverage for things that some subscribers will use – speech therapy, psychology, podiatry, hearing aids, and hip replacements, will also have ok coverage. Compared to private hospital use, these services are used much more by the subscribers, which means less coverage from the insurer, and more out of pocket for you, especially if you need a lot of treatment. 

You can decide if “extras” cover is appropriate for you. A very famous website published this article to elaborate more on this topic. 

Hopefully this new awareness will save you some money either way. 

Another way to insure yourself for “extras” expenses would be an automatic transfer of a certain amount of your choosing into a separate account of your own, for your health related expenses.  

 

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