Health Insurance in NSW
We live in New South Wales and have a Medicare card, but we’re in our 30s. Do we really need health insurance?
I called a provider to check their coverage options and pricing. They quoted nearly $250 per month for two adults in their 30s and one infant, which seems high, especially since our family income is under $194K. They also mentioned that if we don’t get insurance now, we could face a 2% surcharge or loading starting next year.
We already have ambulance coverage, but I’m feeling really uncertain about whether we should opt for full health insurance or not. Any advice?
Deciding whether to take out private health insurance in NSW can indeed be confusing, especially with the various factors to consider. Here are some things to keep in mind:
Medicare Coverage: As you already have a Medicare card, you will have access to essential medical services, including hospital care, doctor visits, and some preventive services. This means you’ll get a lot of coverage through the public health system.
Private Health Insurance: The benefits of private health insurance include shorter wait times for elective surgeries, more choice in healthcare providers, and the option to get treated in private hospitals. However, this additional coverage comes at a cost.
Health Insurance Surcharge: If your family income is above $174,000 (which it is), you’ll have to pay a Medicare Levy Surcharge if you don’t have adequate private health insurance. This surcharge is 1% to 1.5% of your income, so it’s essential to factor that into your decision.
Lifetime Health Cover Loading: If you don’t take out private health insurance before the age of 31, you could face a 2% loading on your premiums for each year you’re over 30 when you eventually sign up. This could make your insurance more expensive in the long run.
Ambulance Cover: You mentioned you already have ambulance cover, which is a vital component since ambulance services can be quite costly.
Cost Considerations: The quoted price of $250/month might seem high, but it’s worth comparing what is covered in that policy. Look closely at the inclusions, exclusions, and limits on services. Sometimes, a basic policy that covers essential services may still be a better option.
In summary, weigh the benefits of having private health insurance against the costs and your family’s specific health needs. It might be helpful to discuss your options with a financial advisor or a health insurance broker who can guide you based on your unique situation.