It is very natural for people to want to try and save money on things they do not use every day such as health insurance, especially since the prices of food, mortgages and petrol are on the rise.

When deciding whether or not you need to get health insurance, you need to first figure out if you would be able to afford an expensive operation in an emergency situation.  For example, if you fall down a flight of stairs and your doctor says your leg needs to be operated on, would you be able to afford it?  Even though your condition is not life threatening enough to be treated immediately through the public system, the discomfort you will be feeling will be a daily distraction for you.  If you go to the hospital for this operation without health insurance, it could easily cost you around $10,000.

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Many people believe private health insurance is expensive.  The truth is you can actually get great coverage for a couple dollars a day.  The cost of the leg surgery could have paid for private health insurance for several years, and the surgery would have been covered.

Most families believe health insurance is a necessary expense because it allows them to choose their own physicians, gain quick access to hospitals, and it reduces the costs for necessary extras.

The health insurance requirements are very different for families at different stages in life, and some examples are listed below.

Couples trying to get pregnant

If you are taking out obstetric coverage for the first time, it is very important that you have the coverage a good bit of time before you become pregnant because the waiting period before giving birth is normally 12 months.

Even though obstetric coverage will raise the cost of your health insurance, here are a couple of ways to offset the cost increase:

1.  Take out coverage that excludes the benefits paid for elderly services.
2.  Reduce or remove your “extras” coverage.  This will reduce your premium.

Families with children

If you are not planning to have any additional children, there is really no reason to have obstetric coverage.  Finding health funds that exclude obstetrics could help you save $1,000 each year.  During this stage of your life, you’ll be getting the most value from your extras, especially dental coverage.

Families with teenagers

During this stage of your life, coverage for your children’s braces is important. Having orthodontic work done can be very expensive.  Fortunately, a good health fund will cover about half of the procedure cost.

The following are 5 reasons why you should consider getting health insurance now if you haven’t done so already:

1.  A major emergency could set you back thousands of dollars unless you have health insurance.

2.  When buying health insurance, you are buying peace of mind. Hopefully you will never have to use your health insurance for any unexpected emergencies, but at least you will have it if you ever need it.

3.  You will want to avoid a long waiting period for treatment.  If you have health insurance, the waiting period for elective surgeries are typically shorter than if you don’t have health insurance.  You will also have your choice of a surgeon.

4.  There may be government penalties if you wait too long to get insurance for you and your family.  For example, unless you purchase health insurance before you are 30 years old, you may end up paying more for it in the long run.

5.  You will be able to get extras coverage.  Extras coverage is the one area where you will actually use the services you pay for – such as dental, glasses and chiropractic.

Remember to always look out for hidden costs when you do your health insurance comparison.  Health insurance can come with an excess, and some health funds may even charge a co-payment.

So, can you afford health insurance?  The way I see it, you can’t afford not to have it.

You should not ignore your family’s need for insurance coverage because more than likely, you or someone in your family will become seriously injured or become seriously ill at some point in time.  If you do not have enough health insurance coverage, it will only add to your stress that the medical emergencies usually cause.  More importantly, health insurance can protect you from out-of-pocket medical expenses.

As you start looking for health insurance coverage, you will need to make a list of your priorities and your family’s potential medical needs.  For example, if you are ever admitted to a hospital for any reason, do you want to be able to choose the hospital?  Also, if your child ever needs a surgical procedure done, do you want to be able to choose her surgeon?  When choosing health insurance coverage, there are many priorities you will need to consider.

Since there are more than 30 different health funds available in Australia, it will be easy to find a plan that will meet your family’s needs and be affordable.

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Listed below are 2 tips that will make the decision process easier as you do a health insurance comparison.

1.   Consider your needs.  For example, are you planning to start a family in the near future?  Do you participate in athletics?  Is there a history of specific illnesses in your family?  Once you answer these questions, it will be much easier for you to choose a health insurance plan.

2.  Make your health insurance decision based on what medical life stage you are in.  For example, if you are a young adult, you will likely only need a basic level of coverage.  If you are at a more mature age, you may need an intermediate level of coverage to cover common risks such as heart, stroke and vascular diseases.  If you are a senior, you will need a higher level of coverage to cover things like hip and knee replacements.

Your health insurance policy may include additional services that you feel are important to your lifestyle and the well-being of your family, such as optical, dentistry and chiropractic.  And believe it or not, these extra services do not have to be with the same insurer as your general health insurance.  As a matter of fact, you may actually save money and obtain better services if you use different insurance providers.

Once you find a plan that suits you and your family’s needs, be sure compare health insurance plans a couple times a year to possibly save money.  For example, if you happen to stumble across a plan that is better suited to your family’s needs and is cheaper, there is no reason to not switch.

If you have any questions regarding the health insurance plan that you are considering, be sure to ask your insurer.  He will help you choose the right plan for you and your family.

If you already have private health insurance, all you need to do is make a call to your health fund or check your policy to see whether or not you have cover for birth-related services. If you only have a budget health cover or a singles health cover, you may need to upgrade your health insurance to include birth-related services.  Keep in mind that these services have a 12 month waiting period before you can use the benefits.  If you do already have birth-related services as part of your health cover, be sure to check the conditions and benefits that you are entitled to.  If you have any questions, be sure to ask your health care provider.

The greatest benefit of having private health insurance for your family is knowing that all of the members of your family will be covered for any medical issues that may happen.  It will give you great peace of mind.  Health insurance is very important for families, not only for the adults of the family, but also for the children and future children.  One of the best things about health insurance is that it does not matter how many children you have.  Families will pay the same premium as couples that do not have children.  In a matter of speaking, children will be covered for free.

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Private health care is the best way to make sure that you receive quality care in a private hospital that you choose.  In many cases, you may even have the luxury of staying in a private room.  If you have private health insurance, you will get all the benefits of private health care without all of the costly medical bills.

The two features that you need to think about when choosing your private health insurance policy as you prepare for a new child are:

1. Pregnancy and birth related services, such as antenatal care, delivery and post-natal care.
2. Assisted reproductive services, such as IVF – in vitro fertilization and GIFT – gamete intrafallopian transfer.

If you have private health insurance, your health fund will cover the costs of in-patient treatment when you are admitted to deliver your baby.  The treatment costs that will be covered include:

• Hospital accommodation, labour ward, and birth centre costs
• Surgery-related expenses
• Medical costs, such as fees for doctor, obstetrician, anaesthetist and paediatrician
• The cost of drugs
• Therapies that are associated with your delivery

So, whether you are expecting your first child or third child, it is certain that you have a very busy time ahead of you. The last thing you want to do is worry about your quality of health care and medical bills.

To help ease your stress and prevent any future stress, I suggest that you get the details of your health insurance all sorted out well in advance.  This really is the best thing you can do for your family.

Because health insurance premiums increase yearly, you should review your policy to make sure you are still getting the best deal possible.  As you review your policy, you can make sure you are only paying for things you need.

About half of the Australian population has never reviewed their health insurance policy, so more than likely they are paying for coverage they may no longer need.  So many people are intimidated when it comes to reviewing their insurance policy, but I assure you that it is not as difficult as you may think.

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It is very important to understand what is and what is not included in your health insurance policy.

Listed below are 7 things to consider as you review your health insurance policy.

1.  Think about what life stage you are at.  For example, are you young, single, a couple with no children, a family with young children, a family with teenagers, a retired couple or a retired single?  Your policy needs to include treatment you will likely need and exclude what you will not need.  Keep in mind that not all health funds will allow you to cut certain things from the policy, so you will definitely need to shop around to find the policy that suits your needs.

2.  Decide which extras you will need added to your policy.

3.  Pay your premium with a direct debit.  A direct debit can save you about 4%.

4.  Think about paying an excess.  By agreeing to pay a certain amount each time you go to the hospital, you can cut the cost of your premium.  Remember, the higher the excess, the lower the premium.

5.  Always think ahead.  For example, if you currently have singles coverage and you have plans to have a baby in the near future, you should move on to the family insurance rate.  Remember, when you have your baby, make sure you add him or her to your policy immediately so they will be covered for future claims.

6.  Do not forget to add your grown children to your policy.  If they are still living at home or going to college, there is a good chance that they may be insured under your policy.

7.  To avoid out-of-pocket hospital expenses, be sure that the hospital where your preferred medical specialist operates is included in your coverage.

It is well worth your time to ask brokers to do a health insurance comparison for you.  You do not have to necessarily act on it, but you can use the information to get a better deal with your current health insurance provider.

If you do come across an insurance plan that suits your needs better, it is very easy to switch health funds.  Just remember to not forget to cancel your direct debit payments to your old provider.  Your new health fund will take care of everything else.

Photo: DIAC Images/Flickr.

1. Don’t Delay

Time is of the essence when it comes to filing a claim. The more quickly you do it, the easier it is, and most funds require you to make a claim within two years of the accident, illness or procedure.

Filing a claim electronically at the time of your appointment is the fasted way to file a claim. Many doctors and other health care providers around Australia provide this service. After your treatment, you simply swipe your card and your claim will be processed. You will only pay the difference between the provider’s fee and your benefit.

2. Know Your Information

When you file a claim, you’re going to need to know or have access to some information. Some things you’ll need to know include your member number, location of appointment, name of physician, type of procedure, date of event, and any third party information (such as if you were involved in an accident with another person).

Many funds now offer a service in which your money can be directly deposited into your financial account. If you are filing a claim and want this to be done, be sure to have your account and financial institution information on hand.

3. Go Online

Most health insurance providers now offer claim filing online. As long as you have all your information handy, this is an easy way to file your claim from the comfort of your own home. You can have your benefit transferred directly to your bank account.

4. Plan Ahead

If you know you are going to have a certain health procedure or are considering one, check with your carrier about your cover. This way you will know ahead of time if your claim will even be accepted and how much you will be responsible for paying.

If you have just started cover with a fund, there may be a waiting period before certain procedures are covered. A simple call to your insurance company can help you fully understand your benefits and how to go about filing a claim for a procedure you may have in the future.

5. Medicare Two-Way

In an attempt to make lodging health claims easier for people with private health insurance, the Australian Government came up with the Medicare two-way initiative. This program allows users to lodge all in-hospital and ancillary claims either with their participating private health insurer or with Medicare Australia. Understanding Medicare two-way can be helpful when filing a claim. Visit http://www.medicareaustralia.gov.au/public/claims/twoway.jsp to learn more.

Filing a health insurance claim no longer means filling out numerous forms and waiting forever for payment. Often, it’s as easy as swiping a card. Just be sure to understand your plan and benefits and filing a claim won’t be any trouble at all.

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Luckily, there are other options available that will help you afford health care.  One of these options is applying for a Health Care Card.

Health Care Card Eligibility

Eligibility for the Health Care Card is determined by Centrelink.  Centrelink offers a variety of concession cards. These cards provide people with financial benefits and access to certain health services.  One of the more common cards Centrelink offers is the Low Income Health Care Card.

Low Income Health Care Cards are available to those who satisfy the specific income test and meet other residency requirements.  For example, you must be in Australia, be an Australian resident, or you must be the holder of a special category visa to qualify for a Low Income Health Care Card.

You may be entitled to cheaper medication under the Pharmaceutical Benefits Scheme if you are a Low Income Health Care Card holder.  You may also be entitled to concessions offered by private companies, as well as state and local government concessions.

If you are a student, foster carer, a low income earner, or if you meet the Low Income Health Care Card income test, you may be eligible for a Low Income Health Care Card.

Claiming a Low Income Health Care Card

The first thing you need to do in order to claim a Low Income Health Care Card is register an Intent to Claim.  This will inform Centrelink that you will be applying for your card soon.

Keep in mind, if you want to use a paper claim form when you claim your Low Income Health Care Card, you must still register an Intent to Claim.  You may do this online, by telephone, or in person.  After you register an Intent to Claim, you will be sent a claim form in the mail.

You will then need to actually lodge your claim for a Low Income Health Care Card.  You will be asked a few questions regarding your and your partner’s income, assets and tax file numbers.

Following the submission of your claim, you will need to provide proof of identity.  If you need to provide any other type of information, Centrelink will let you know.  Once you get all of the required documents submitted, your claim will be processed.

Using Your Card

If your claim is accepted, your Low Income Health Care Card will arrive in the mail, and it will be valid for six months from the date that you lodge your claim.  One month before your card reaches its expiration date, Centrelink will send you a renewal claim form.  That is if you are still eligible of course.

You will be required to re-qualify each time you renew your Low Income Health Care Card.  To be eligible for a renewed card, your weekly income must not exceed the maximum gross income specified by Centrelink.

Remember, if your circumstances change, you must inform Centrelink.  For example, if your income increases or you return to work, they must be notified.  If you stop receiving your Centrelink payment, your Low Income Health Care Card will automatically be cancelled.

Contact Centrelink if you’d like to learn more about the cards they offer, and see if you can help reduce your health care costs this way.

Much of recent media attention in Australia has been devoted to the recent announcement of the means-test for the Federal Government’s Health Insurance Rebate. Currently, the rebate stands at 30 per cent across the board, regardless of income. From July 1 this year, the government will means-test the rebate for the first time. How much you earn will impact how much you get back as part of the rebate. Some people won’t receive any rebate at all.

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Those on high salaries will be hit the hardest, with singles on more than $130,000 and families on more than $260,000 not receiving any rebate at all.

In an attempt to stop some of people affected withdrawing from their private health care plans, the government has placed a cap on the Medicare Levy Surcharge for people who bring home more than a specified amount. Singles earning more than $130,000 and households on more than $260,000 have the surcharge capped at 1.5 per cent.

Here is a table that will help you figure out how much you will be impacted.

There is a silver lining in this dark cloud, however.

Some health insurance providers are allowing members to pre-pay their premiums for up to a certain period, thereby locking in today’s prices for the length of the time prepaid. Certain health funds are even allowing customers to pre-pay their fees for up to two years.

Paying your premiums now means you can beat the means-test because it has not begun yet.

Here are the sites of the major health insurance companies.

Australian Unity
http://www.australianunity.com.au

Bupa
http://www.bupa.com.au/

HBF
http://www.hbf.com.au/

HCF
http://www.hcf.com.au/

Medibank
http://www.medibank.com.au/

NIB
http://www.nib.com.au/

For more information on how to take advantage of this, give us a call on 1300 64 33 55. Alternatively, you can leave your details with us and we’ll get back to you as soon as possible.

Read more about the rebate at the government’s Private Health website.

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As a chronic disease, Type 1 diabetes cannot be cured, but it can be managed so that the patient can live a completely functional life like any other individual. Type 2 diabetes can often be cured when measures are taken to improve lifestyle, although it can be a lifelong battle. In either case, medical visits and care are a big part of a diabetic’s life and can become a large expense.

Diabetes and the Medicare System

The Medicare system covers chronic disease management, but as with other medical conditions and needs, there is a limit to what cover you can receive. Any individual requiring medical care may only see certain doctors, and is only covered for specific services. Additionally, should you require a hospital stay, you are limited to particular hospitals. Medicare absorbs an enormous amount of expense due to diabetes.

Diabetes and Private Health Insurance

Understandably, many diabetics choose to purchase private health insurance to cover their medical needs. Private health insurance can ease the burden of care, as it allows many more options and much greater flexibility for patients.

A diabetic needs to create a plan with a doctor and manage the plan over a long period of time, so having a relationship with a chosen doctor is typically preferred. Private health insurance provides the ability for diabetics to get the care they want in the way they want it. Out of pocket expenses without health insurance may become prohibitive, but Medicare may not cover all the options you desire. Private health insurance may make it more affordable.

Aside from regular doctor’s care, a diabetic may need the services of:

• a dietician, to help create a healthy diet that will work
• an endocrinologist, to check and regulate hormones
• a podiatrist, to monitor blood supply to the feet, since morbidity is a known outcome of uncared for diabetes
• other specialists to offer continued maintenance in case any problems arise

Waiting Periods

Private health funds typically make you wait a certain amount of time after you’ve joined before you are eligible to receive services, if you have a previously diagnosed chronic illness. The waiting period is usually twelve months. The same waiting period exists for those new to private health insurance as well as those switching private health funds.

Compare Private Health Insurance

If you have made the decision to register for private health insurance, a private health fund comparison will enable you to see the benefits of different options and make a wise choice. They usually have informative web sites and are more than happy to send you materials to read. Consider what services they have for diabetics, and don’t hesitate to speak to a representative about what the fund can do for you.

Some sports players and athletes receive a degree of health insurance through their team or organisation, so find out if this is the case for you. That type of health insurance will not necessarily cover everything you want, though, so you may still end up comparing health insurance for your own purposes.

Your Specific Health Needs

In any health insurance comparison, one of the preliminary steps is to identifying your precise health care needs, and those that you are likely to have in the future.

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There is no simple formula for doing this, unfortunately.  Taking account of your sporting activities, you may want to look for coverage that can meet your needs for sports related healthcare. For instance, here are some examples that may be relevant to you:

• Locations: Do you travel to play your sport?  If so, you might need medical assistance when away from your home town (even for something unrelated to sports).
• Known risks: Are there any injuries or other medical conditions that are known to be common in people who participate in your particular sport? You may want to ensure that your health insurance covers these ailments.
• Extras: From coverage for personal trainers to physiotherapy treatments or medications, you might want to take a look into which extras are part of your policy, and how they fit with your sporting life.  Always check what won’t be covered, too.

Balancing Your Needs

Aside from identifying any particular sports-related medical needs you have, the important thing is to balance those specific needs with the everyday health care you may need whether you play sports or not:

• What health care might you need, and what is or isn’t covered by the policy you’re looking at?
• What are your regular medical needs? Do you already receive treatment for something, and if so is this likely to continue?

Decide upon the range of medical coverage that you need.  You might want to comprehensively insure yourself with a high level of cover, or you may choose a lower coverage that only covers the specifics you want.  Whatever the case may be, you must identify your most important needs in order to figure out your health insurance comparison priorities.

Look over policies in full to check the level of coverage that will be involved.  Once you know what you need, it will be easier to weed out the ones you don’t want. This will help you to choose a private health fund to help you with health care costs, sports related or otherwise.

What can happen in this case is that Medicare foots the bill for dental emergencies that could have been avoided. For dental expenses not covered by Medicare, people are forced to pay out of pocket unless they have private health insurance to help cover their dental costs.

The Government has been making strong attempts to get more Australians involved in preventative dental care, both to ensure better dental health and to ease the pressure on the Medicare system. One model they have created is the Medicare Teen Dental Plan, which offers a free voucher for a dental checkup for teenagers.

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Purpose of the Medicare Teen Dental Plan

The purpose of the plan is to enable teens who might have financial difficulty getting proper dental care. The plan also seeks to encourage teens to develop a concern for their overall dental health and take proper care of their teeth into the future.

Medicare Teen Dental Plan Benefits

The plan provides a voucher worth $163.05 for eligible teens – this amount can change slightly every year when indexed in January. The voucher can be applied toward getting dental health care. It may cover a checkup, cleaning and necessary x-rays as well as other services.

How to Get and Use the Voucher

Medicare has a database of patients and will send the voucher with a letter in the mail directly to eligible participants in January of each year; patients do not have to apply.

Teens are free to use the voucher at Medicare registered dentists, or at private dentists who will bill Medicare. The vouchers may also be used at dental clinics and in schools that provide dental services. Patients need to bring the voucher and present it at their appointment in order to receive the treatment free of charge. Vouchers last one calendar year, and a new one is sent each year.

If you become eligible in the middle of the year and have not received a voucher and letter by December, contact your local Medicare centre to confirm your eligibility.

Voucher Eligibility

To qualify for the free voucher, teens need to meet several eligibility requirements:

• Patients must be between the ages of twelve and seventeen.
• Patients must be eligible for the Medicare system.
• Patient’s family must have a need for this type of care, which is determined through several different means. Since this is all done by Medicare, the participant does not need to actively show or prove their need.

If a teenager meets these requirements for even one day out of the year, they can claim eligibility for the program. There are about 1.3 million teenagers that are currently eligible for the Medicare Teen Dental Plan.

Private Health Insurance

If a teen does not meet the eligibility requirements for the teen dental plan voucher, they can still take preventative measures to ensure good oral health by getting annual checkups. Compare health insurance plans to look for a package that covers dental health for your entire family at a premium that fits your budget. You’ll be teaching your teen proper dental practices and possibly saving money on the avoidable dental emergencies that regular dental care helps to prevent. Compare health funds carefully before making up your mind, as each one provides different services at different premiums.