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GENC3003Personal Financial Planning Andrew Hingstonandrew.hingston@unsw.edu.au Unit 6: Health insurance
2 Health InsurancePublic health is good … but How long will universal healthcare remain sustainable? New and expensive medical technology $$$ Aging population that demands expensive treatment $$$ Decreasing proportion of population paying taxes! Medicare levy surcharge (extra 1% tax on income) if you earn over $50,000 makes it cheaper to have insurance. Federal Government’s 30% rebate makes it cheaper Lifetime Health Cover makes joining expensive after age 30
3 Health InsurancePrivate Health Insurance covers Hospital cover Medicare Gap - difference between what Medicare will cover and scheduled fees Medical Gap - difference between scheduled fees and what the doctor charges (in selected hospitals only) General extras Dental, optical, physio … expenses Fund covers maximum of $X per visit and $Y per year Ambulance costs The costs of emergency transport by ambulance (expensive!)
4 Health InsuranceExcesses and co-payments The part of any medical costs that you have to pay Designed to discourage hypochondriac behaviour Sometimes based on “days” in hospital HCF is $50 per day spent in hospital Sometimes based on “total per year” MBF is $500 per year per person insured The higher the co-payment or excess … the lower the premiums! Best to have “savings buffer” and choose higher excess But lower the excess 12 months before having a baby!
5 Health InsuranceHealth Insurance Tips Remember that insurance is designed to protect you against worst-case scenarios Most people lose on extras cover over the long term Cheaper to have hospital cover only and save the difference Research and consider each fund carefully iselect.com.au provides some okay guidance (not great though) Consider “hospital only cover” with high excess self-insure for general extras unless it is definitely worth it! Always get ambulance cover
6 Travel Insurance Covers medical expenses and theft when you are travelling overseas Health-care overseas can be VERY expensive Plus … the experience can be a nightmare! An absolute “must-have” when travelling Read all the terms and conditions carefully before leaving Write down a procedure for what to do if you get very sick and keep it with your passport

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Unit 6c Health insurance

  • 1. GENC3003Personal Financial Planning Andrew Hingstonandrew.hingston@unsw.edu.au Unit 6: Health insurance
  • 2. 2 Health InsurancePublic health is good … but How long will universal healthcare remain sustainable? New and expensive medical technology $$$ Aging population that demands expensive treatment $$$ Decreasing proportion of population paying taxes! Medicare levy surcharge (extra 1% tax on income) if you earn over $50,000 makes it cheaper to have insurance. Federal Government’s 30% rebate makes it cheaper Lifetime Health Cover makes joining expensive after age 30
  • 3. 3 Health InsurancePrivate Health Insurance covers Hospital cover Medicare Gap - difference between what Medicare will cover and scheduled fees Medical Gap - difference between scheduled fees and what the doctor charges (in selected hospitals only) General extras Dental, optical, physio … expenses Fund covers maximum of $X per visit and $Y per year Ambulance costs The costs of emergency transport by ambulance (expensive!)
  • 4. 4 Health InsuranceExcesses and co-payments The part of any medical costs that you have to pay Designed to discourage hypochondriac behaviour Sometimes based on “days” in hospital HCF is $50 per day spent in hospital Sometimes based on “total per year” MBF is $500 per year per person insured The higher the co-payment or excess … the lower the premiums! Best to have “savings buffer” and choose higher excess But lower the excess 12 months before having a baby!
  • 5. 5 Health InsuranceHealth Insurance Tips Remember that insurance is designed to protect you against worst-case scenarios Most people lose on extras cover over the long term Cheaper to have hospital cover only and save the difference Research and consider each fund carefully iselect.com.au provides some okay guidance (not great though) Consider “hospital only cover” with high excess self-insure for general extras unless it is definitely worth it! Always get ambulance cover
  • 6. 6 Travel Insurance Covers medical expenses and theft when you are travelling overseas Health-care overseas can be VERY expensive Plus … the experience can be a nightmare! An absolute “must-have” when travelling Read all the terms and conditions carefully before leaving Write down a procedure for what to do if you get very sick and keep it with your passport