Hooray for Medicare!
Australia is often promoted as having one of the greatest health systems in the world. This statement can be argued, but we definitely do not have the unfortunate reputation of the United States of America, where cost of health care is a leading cause of financial distress and bankruptcy for too many Americans.
Our Medicare program, reinstated on 1 February 1984, gives ‘free’ health care access for every Australian.
Why do we need Health Insurance then?
Although I am no health insurance expert by any means, I am aware that there are several countries around the world where health insurance is not required. These Governments manage health systems without the need for insurance by its citizens.
I am on the side of lets increase the Medicare Levy so we all have better health care rather than propping up the Health Insurance Industry. Giving everyone a fair go to access anything they need from the health system would be great. But we live in a capitalist society and some people have found a way to make a profit from our health system, for better or worse, this is the system we have – and are likely to keep for quite some time.
Should I have Private Health Insurance?
Thoughts on the subject vary, but one undeniable fact is that once your family reach a determined level of income, you will essentially be taxed extra if you do not have ‘appropriate hospital cover’. This is the main reason many people of higher income have Private Health Insurance.
The medical needs and resources will be different for everyone, and each has to weigh the options to make their own decision. Do your homework to determine what exactly your family needs, particularly with consideration of taking on ‘extras’ coverage for things like Dental, Optical and coverage for Natural Therapies.
In a Nutshell,
My thoughts*, if you are going to be taxed extra by paying the Medicare Levy Surcharge, then you might as well pay for Hospital Cover, this way potentially, you may get some direct benefit from your money.
(*These are my thoughts only, in general form and do not reflect any advice or opinion of Wall Business Services…. better put that one in… I am not advocating people cancel their health insurance or alter in any way.
To be clear – I still have full coverage for my family, although I have been doing the maths and yes, pay more than I receive, but this is for a just in case type situation specific to my own circumstances).