Health Insurance in Australia for Expats and Foreigners
Australia is one of the most popular expat destinations in the world. It has an exceptionally high standard of living thanks to its low population density, long life expectancy, high standards of literacy and education, and excellent standards of public healthcare. In fact, according to the Human Development Index (HDI), Australia ranks 7th in the world for quality of life. No wonder expatriates love it! And as they settle in, they will find that Australia’s public healthcare has a lot of benefits for them. This is what they need to know about public and private health insurance in Australia.
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Overview of Australia’s Public Healthcare System
Australia has a system of universal public healthcare known as . It is delivered through a combination of private and public services. On the public side are public hospitals, community services, public health initiatives, and government-based organizations. The private system includes private hospitals and clinics, pharmacies, and doctors in private practice who provide care to the public, billing the government directly when they see patients.
The federal government funds public healthcare through taxes levied on salaries. Most taxpayers contribute 2% of their income to pay for Medicare. Those who earn little to no income have this contribution waived.
Private Health Insurance in Australia
Approximately 50% of Australians have private health insurance. And this number is growing. The Australian government is actively trying to encourage high-earning individuals to take out private insurance policies to augment their public coverage. This is part of a program to relieve the pressure on public facilities and reduce wait times. In fact, high earners face an extra tax unless they carry private insurance. Given that private health insurance coverage is usually more economical for younger people, it makes sense to acquire it early on, even before you hit the salary threshold.
Pros and Cons of Using the Public Health System
Australia has an excellent public healthcare system. However, the system is not perfect. There are waiting lists for specialist appointments and elective treatments. As well, travel is often necessary in order to access specialist care in rural areas. Thus, most expats in Australia opt to have private health insurance to supplement their coverage from the public Medicare program. As an added benefit, private healthcare means being treated in facilities that are more comfortable and private, with shorter waits and a greater choice of physicians.
However, as many expats will attest, private healthcare facilities do not extend into the realm of emergency services. And in many rural and remote regions, emergency services play a more prominent role in providing healthcare. Therefore, even if an expat prefers the level of care and comfort offered through private insurance, it is still well worth applying for public coverage through Medicare. You never know when you will need help such as emergency services, and it is best to be covered when you do.
Can Expats Qualify for Health Insurance in Australia?
Medicare is available to all Australian citizens and permanent residents. Therefore, all expats who qualify as permanent residents are eligible for coverage.
However, this does not mean that all visitors to Australia can receive Medicare. In particular, all expats moving to Australia with a working visa (and not permanent residency) are not eligible. In fact, they must prove that they have adequate private health insurance, or they will not receive your visa at all. Furthermore, all tourists and other short-term visitors to Australia should carry their own private travel medical insurance coverage.
Read: Insurance for Expats
What You Need To Know About Applying for Medicare
Generally speaking, signing up for Australian Medicare is easy. Permanent residents can use the official Medicare site to check their eligibility and begin the application process. The website is well laid out and will review what documents you need to have and what steps you can expect. When you have all your supportin