Australia's Health Care System
Health care systems differ from country to country. The health care system in Australia is made up of Medicare and private health insurance. Here's some information to help you better understand how the Australian health care system works and what it means for you.
Medicare
Medicare is Australia's public health care system, which provides free or subsidised cover for many health care costs and is available to all Australian citizens and permanent residents of Australia.
Overseas visitors on temporary visas are not eligible for Medicare benefits unless they are from a country that has a 'Reciprocal Health Care Agreement' (RHCA) with Australia.
Reciprocal Health Care Agreements (RHCA) with Australia
The Australian Government has signed a RHCA with governments of certain countries to allow people coming from those countries some access to Medicare. These countries include United Kingdom, Malta, Sweden, Finland, Italy, Norway, Belgium, the Netherlands, New Zealand and Republic of Ireland.
The level of Medicare cover you receive is limited to immediately necessary treatment only, and the level and period of cover varies dependent on which country you come from. To find out if you have access to Medicare and what level and period of cover you are eligible for please refer to Medicare.
If you are from any of the RHCA countries with the exception of New Zealand and Republic of Ireland, you are eligible to receive a Reciprocal Medicare card.
Please note that even if you are eligible for Medicare under a reciprocal arrangement with your country, you will only be covered for immediately necessary medical treatment. This does not include treatment that is considered ongoing, elective, or treatment in a private hospital; and you will not be able to choose your own doctor in hospital.
That's where your private health insurance can help. We offer a range of overseas visitor covers that provide greater control in choosing where you are treated and who treats you. Many of our covers for overseas visitors provide public and private hospital cover, full ambulance cover, cover for visits to the doctor or specialists in private practice, and extras cover for a wide range of health services including dental, optical, physiotherapy, massage and more.
Overseas visitor policies at a glance
What is the Government Rebate?
The Federal Government provides a rebate on private health insurance premiums to everyone who is eligible for Medicare benefits. It is not means tested and makes quality health care more affordable and accessible to all Australians. The rebate is paid according to the age of the oldest person on the health insurance policy as follows:
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As an overseas visitor, if you choose a combined hospital and extras cover, you may be eligible for the Government Rebate on your extras premiums. This only applies if you are from a country that has a RHCA with Australia and you hold a Reciprocal Medicare card.
To apply for the Government Rebate upfront, eligible overseas visitors must be able to provide details of their Reciprocal Medicare card upon joining.
What is the Medicare Levy Surcharge (MLS)?
All taxpayers in Australia must pay the 1.5% Medicare Levy. In addition to this, individuals and families on incomes above the MLS thresholds who do not have eligible private hospital cover may have to pay the MLS. This is an additional 1% on top of the Medicare Levy. The MLS thresholds are $77,000 per annum (for singles) and $154,000 per annum (for couples and families).* If you are an overseas visitor who is eligible for a Reciprocal Medicare card and earning over the MLS threshold in Australia, you may be liable to pay the MLS.
If you are not eligible for a Reciprocal Medicare Card you will be exempt from the MLS and an exemption form can be obtained via Medicare. Please consult your tax advisor for specific tax advice.
Our overseas visitor covers do not exempt you from paying the MLS. However, you are able to purchase an additional cover called Reciprocal Health Cover, which will provide you with an exemption to the MLS. Reciprocal Health Cover will cost you less than the MLS itself. For more information about this option, please click here.
* Increases by $1500 per child, after the first child.
Source : MBF Australia.