Private health insurance

What it is

optional insurance that people can pay for that contributes towards health services and costs that Medicare does not cover

What are the hospital cover tiers

• Gold - most comprehensive

• Silver - moderate coverage

• Bronze - limited coverage

• Basic - minimal coverage

What are the two main types of PHI

Hospital cover - covers treatment in private hospital

Extras cover - pays for services like dental, physiotherapy, and chiropractic care (not covered by medicare)

Advantages

• people can choose in and out of hospital doctor

• less waiting time for elective surgeries 

• private hospital room

• reduces money spent by medicare

• Access to private hospital care

Disadvantages

• premiums can be expensive

• polices can be confusing

• waiting times still apply

• often gap payments required to be paid by the patient 

PHI Rebate (incentives)

End of each year low income earners get 25% of premiums they have paid refunded, If people are  65+ they get higher rebates 

lifetime health cover (incentives)

people who get PHI after 30 have to pay an additional 2%per year on premiums. Join at 40 it is an extra 20%

medicare levy surcharge (incentives)

additional 1-1.5% tax placed on high income earners that don’t have PHI

aged based discount (incentives)

from ages 18-29 they get 2% off premiums for every year under 30

sustainability

PHI rebate, aged based discount lifetime health cover - all encourage people to sign up to PHI. Save costs on medicare

access

PHI rebate, low income earners getting a percentage of premiums back, makes more people able to afford PHI. PHI covers costs towards health services not covered by Medicare  - gives people more access to more health services eg. dental

equity

Aged based discount , PHI rebate (low income earners), those who use PHI a lot don’t have to pay higher premiums

funding 

The federal government provides funding for PHI rebate meaning PHI is affordable for more people. PHI funds private hospitals - 40% of treatment