injuryupdate
07-04-2004, 08:33 PM
Good article from Sunday Telegraph:
Do you need it or not? Bronwyn McNulty rolls up her sleeves and investigates.
Private health insurance companies will argue that everyone needs, and will benefit from, private health cover. But what's the point of shelling out a substantial amount of money for what-if healthcare when you are already covered by the public health Medicare system - especially when, in the face of claims that it is winding it down, the Federal Government has just pledged to spend a further $2.4 billion during the next three years.
Lawyer Sonya Kroon, 34, says she and her husband Craig took out private health cover so their children could be born in a private hospital with the obstetrician of their choice.
"The obstetrician I chose only delivered in private hospitals, and I think it's important to have a good obstetrician," says the Sydney mother-of-two.
"We maintain the health insurance now because we have two young children, and also because we're both over 30, so if we dropped out and wanted to rejoin when we were older it would cost us significantly more."
Kroon is referring to the introduction of lifetime health cover, which means that if you don't have private health insurance by the time you're 31, you will pay a two per cent loading for every year you are older than 30.
David Jones, national public affairs manager for MBF, says this means if you join a fund at the age of 40, you'll pay 20 per cent more in fees than had you joined before the age of 31.
"Our very strong view is that private health insurance is relevant to people of all ages," says Jones. "There's a belief that health concerns happen mostly when people are older, but it can't be ignored that young people, particularly because of their active lifestyles, are also susceptible to health problems."
Simone Tregeagle, communications manager for Grand United Health Fund, says that unless you have private health insurance, you can't have the doctor of your choice.
"Private health insurance gives you control over your health when you are at your most vulnerable," she says, adding that for elective surgery, private health insurance is a must. "In the public system you could be on a waiting list for years."
money matters Another financial incentive to take out private health cover exists in the form of the Federal Government's Medicare levy surcharge. If you don't have private health insurance providing basic hospital cover, and your taxable income totals more than $50,000 (single) or $100,000 (for a family, including a sole parent), you will pay the surcharge. The family threshold increases where there are two or more children.
"So in addition to paying 1.5 per cent in Medicare, you will pay an extra one per cent of your taxable income in Medicare levy surcharge," says Colin Lewis, head of technical services for financial planning firm Ipac Securities.
"From a financial point of view, you need to weigh up whether having private health insurance is cheaper than paying this surcharge. If you are paying for it anyway, you might as well have it."
Private health cover has another financial attraction - it carries a 30 per cent tax offset. So if you pay $500 a year for insurance, you will get $150 back.
But in spite of all these incentives, which make it difficult for someone earning above the thresholds to ignore the financial lure of taking out private health insurance, the bottom line is that healthcare still comes down to choice.
Simon Peters, a Melbourne photographer, considers free healthcare for all to be a basic right.
good care for all "I have a moral objection to one level of healthcare for the rich and another for the poor," he says. "But aside from that, my wife and I had our baby in the public health system and I don't think the standard of care could have been better."
what you get
HCF Hospital Advanced Savings and General Extras (ancillary cover)
• Costs: $55 per month for singles, $110 for couples (after Federal Government rebate of 30 per cent)
• Suits: singles or couples
• Excess: $50 a night for four nights in hospital
• Covers: hospital cover and dental, optical, physiotherapy, chiropractic and osteopathy treatment. Also includes an Accident Cash Advantage, which pays you $1000 if you need surgery as a result of an accident. Call 13 14 39 or visit www.hcf.com.au
Grand United UltraCare Lite and Priority Hospital cover
• Costs: $79.87 per month for singles, $159.79 per month for a family (after Federal Government rebate of 30 per cent)
• Suits: singles or families
• Excess: variable
• Covers: hospital cover and dental, optical, pharmaceutical and physiotherapy treatment, as well as remedial massage, naturopathy, homeopathy and acupuncture. Also offers rebates on health management services, such as asthma education, asthma swimming classes or diabetes education. Call 1800 800 245 or visit www.grandunited.com.au
MBF HealthSmart (combined cover for hospital and ancillary health services)
• costs: $65.60 per month for singles, $123.80 per month for couples (after Federal Government rebate of 30 per cent)
• suits: singles or couples
• Excess: $250 for hospital services
• Covers: hospital cover and treatment including general dental, major dental, optical, physiotherapy, chiropractic, osteopathy, occupational therapy, podiatry, psychology and dietetics, pharmaceutical, complementary therapies (such as the Alexander technique, homeopathy, iridology and others), health management aids and appliances, and MBF living well programs (such as first-aid courses, nicotine replacement therapy and weight loss programs).
Call 132 623 or visit www.mbf.com.au
• please note: insurance companies tailor packages to suit individual needs. Check with individual funds for your particular needs.
The Sunday Telegraph
Do you need it or not? Bronwyn McNulty rolls up her sleeves and investigates.
Private health insurance companies will argue that everyone needs, and will benefit from, private health cover. But what's the point of shelling out a substantial amount of money for what-if healthcare when you are already covered by the public health Medicare system - especially when, in the face of claims that it is winding it down, the Federal Government has just pledged to spend a further $2.4 billion during the next three years.
Lawyer Sonya Kroon, 34, says she and her husband Craig took out private health cover so their children could be born in a private hospital with the obstetrician of their choice.
"The obstetrician I chose only delivered in private hospitals, and I think it's important to have a good obstetrician," says the Sydney mother-of-two.
"We maintain the health insurance now because we have two young children, and also because we're both over 30, so if we dropped out and wanted to rejoin when we were older it would cost us significantly more."
Kroon is referring to the introduction of lifetime health cover, which means that if you don't have private health insurance by the time you're 31, you will pay a two per cent loading for every year you are older than 30.
David Jones, national public affairs manager for MBF, says this means if you join a fund at the age of 40, you'll pay 20 per cent more in fees than had you joined before the age of 31.
"Our very strong view is that private health insurance is relevant to people of all ages," says Jones. "There's a belief that health concerns happen mostly when people are older, but it can't be ignored that young people, particularly because of their active lifestyles, are also susceptible to health problems."
Simone Tregeagle, communications manager for Grand United Health Fund, says that unless you have private health insurance, you can't have the doctor of your choice.
"Private health insurance gives you control over your health when you are at your most vulnerable," she says, adding that for elective surgery, private health insurance is a must. "In the public system you could be on a waiting list for years."
money matters Another financial incentive to take out private health cover exists in the form of the Federal Government's Medicare levy surcharge. If you don't have private health insurance providing basic hospital cover, and your taxable income totals more than $50,000 (single) or $100,000 (for a family, including a sole parent), you will pay the surcharge. The family threshold increases where there are two or more children.
"So in addition to paying 1.5 per cent in Medicare, you will pay an extra one per cent of your taxable income in Medicare levy surcharge," says Colin Lewis, head of technical services for financial planning firm Ipac Securities.
"From a financial point of view, you need to weigh up whether having private health insurance is cheaper than paying this surcharge. If you are paying for it anyway, you might as well have it."
Private health cover has another financial attraction - it carries a 30 per cent tax offset. So if you pay $500 a year for insurance, you will get $150 back.
But in spite of all these incentives, which make it difficult for someone earning above the thresholds to ignore the financial lure of taking out private health insurance, the bottom line is that healthcare still comes down to choice.
Simon Peters, a Melbourne photographer, considers free healthcare for all to be a basic right.
good care for all "I have a moral objection to one level of healthcare for the rich and another for the poor," he says. "But aside from that, my wife and I had our baby in the public health system and I don't think the standard of care could have been better."
what you get
HCF Hospital Advanced Savings and General Extras (ancillary cover)
• Costs: $55 per month for singles, $110 for couples (after Federal Government rebate of 30 per cent)
• Suits: singles or couples
• Excess: $50 a night for four nights in hospital
• Covers: hospital cover and dental, optical, physiotherapy, chiropractic and osteopathy treatment. Also includes an Accident Cash Advantage, which pays you $1000 if you need surgery as a result of an accident. Call 13 14 39 or visit www.hcf.com.au
Grand United UltraCare Lite and Priority Hospital cover
• Costs: $79.87 per month for singles, $159.79 per month for a family (after Federal Government rebate of 30 per cent)
• Suits: singles or families
• Excess: variable
• Covers: hospital cover and dental, optical, pharmaceutical and physiotherapy treatment, as well as remedial massage, naturopathy, homeopathy and acupuncture. Also offers rebates on health management services, such as asthma education, asthma swimming classes or diabetes education. Call 1800 800 245 or visit www.grandunited.com.au
MBF HealthSmart (combined cover for hospital and ancillary health services)
• costs: $65.60 per month for singles, $123.80 per month for couples (after Federal Government rebate of 30 per cent)
• suits: singles or couples
• Excess: $250 for hospital services
• Covers: hospital cover and treatment including general dental, major dental, optical, physiotherapy, chiropractic, osteopathy, occupational therapy, podiatry, psychology and dietetics, pharmaceutical, complementary therapies (such as the Alexander technique, homeopathy, iridology and others), health management aids and appliances, and MBF living well programs (such as first-aid courses, nicotine replacement therapy and weight loss programs).
Call 132 623 or visit www.mbf.com.au
• please note: insurance companies tailor packages to suit individual needs. Check with individual funds for your particular needs.
The Sunday Telegraph