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Health Insurance for Families

Jonathan February 18th, 2015 0 comments

Being a parent is a huge responsibility, and part of that responsibility involves making sure that your children grow up to be strong and healthy. Children are prone to accidents and can get sick frequently as they are growing up. Kids may also have many different needs as their bodies grow and develop, from routine dental care to braces to eyeglasses. While Medicare covers some hospital costs if your kids get sick, it does not come close to offering all of the healthcare coverage that growing families with children may require. As a result, it is important to shop for a private health insurance policy that meets your families needs.

The Cost of Kids

Should You Buy Family Cover?

It is possible for every member of the family to buy a separate health insurance policy. It is also possible to purchase dependent-child only cover and not purchase cover for yourself and your spouse. In almost all situations, however, it makes sense for you to purchase a family policy.

Buying a policy that covers the entire family can be less expensive than trying to purchase individual cover for each family member. A family policy that covers everyone protects you from large out-of-pocket expenses in case of illness or accident. Some policies also offer special features, like 100 percent back for kids extras coverage, if you buy comprehensive family coverage.

When Should You Upgrade to a Family Policy?

There is a 12-month waiting period for obstetrics cover. If you want your policy to provide you with care during your pregnancy and for the birth of your baby, you must purchase obstetrics cover before you get pregnant.

A couples policy with obstetrics cover will pay for labor and delivery but not for any care the infant may need upon birth. Many funds require you to upgrade to a family policy between one and three months before your baby is born so the infant will be covered if he or she is admitted to the hospital and needs immediate medical care.

What Types of Cover Should You Look for?

Children often have special needs for health insurance cover. Some of the different types of treatments your child may require that private health insurance can cover include:

  • Hospital care: Medicare covers treatment in public hospitals. There may be a long wait for care in a public hospital for procedures. For example, the wait time for a tonsillectomy can be around 100 days.

    How Long Could Your Child Have to Wait for Care?

    Health Insurance Waiting Period Estimator

    You will have to serve a waiting period when you start a new private health insurance policy or increase your level of cover. A waiting period protects members of the fund by ensuring that individuals aren't able to make a large claim shortly after joining and then cancelling their membership. This kind of behaviour would result in increased premiums for all members.

    Use this calculator to choose a hypothetical date in the future (or leave it on the default setting, which is today's date) to determine when you will be covered for various types of coverage.

    Most health insurance funds will apply the following waiting periods to new members taking out a hospital cover product:

    (These are the maximum waiting periods allowed by law for hospital cover.) These waiting periods also apply to any additional benefits on your new product if you transfer to a higher level of hospital cover, with your existing fund or with a different fund.

    Note: If you are moving to the same or a lower level of cover, you will NOT have to re-sit waiting periods.

    Some funds also apply Benefit Limitation Periods for some types of treatment on some of their hospital covers.

    Months Standard Waiting Period
    • Accidents
    • Ambulance
    • Chiropractic/Osteopathic
    • Alternate/Natural Therapies
    • Dietetics
    • Eye Therapy
    • Hospital Treatment
    • Occupational Therapy
    • Pharmaceutical Perscriptions
    • Physiotherapy
    • Podiatry
    • Speech Therapy
    • General Dental
    • Optical
    • Orthotics
    • Major Dental
    • Pre-Existing Conditions
    • Pregnancy Related Services
  • Dental and orthodontic care: The Medicare Child Dental Benefits Schedule pays up to $1,000 in dental expenses over two consecutive calendar years for eligible children aged two and 17. No other dental or orthodontic treatments are covered unless you purchase an Extras policy with general dental and/or major dental cover. Many children require the removal of wisdom teeth, braces, retainers and other types of costly dental or orthodontic care. Look for a policy that pays for these treatments.
  • Speech therapy: Children may experience speech impediments as they learn to talk. If not corrected, these impediments could plague them for the rest of their life. Extras cover can cover speech therapy if your child needs it.
  • Glasses and contact lenses: As your children?s eyes develop, they may be nearsighted or farsighted. Eye tests are covered by Medicare, but vision correction is not. Kids may need glasses in order to be able to see the blackboard or see when they cross the road. Extras cover can ensure you are able to get them the help they need to see the world as they grow.

These are just some of the different examples of needs that your child may have. You and your spouse likely will also have needs, including chiropractic care, vision correction, hospital care for emergencies, and dental care. Buying a family hospital and Extras policy will allow everyone to stay healthy without worrying about large medical expenses.

Will a Family Policy Cover Pregnancy?

Singles, couples and family policies can all cover pregnancy provided you have purchased a policy with obstetrics cover. However, there is a 12 month waiting period before your policy is required to pay for pregnancy and birth services. If you are planning to have a child, or to have more children, purchasing obstetrics cover in advance is essential.

Will a Family Policy Cover Fertility Treatments?

The Extended Medicare Safety Net in Australia can provide a capped-rebate for some in vitro fertilization (IVF) related treatment when an annual threshold has been reached for the year. However, most assisted reproductive technology treatments make you eligible for a rebate only if an insemination procedure is involved. Hospital and day surgery services, including embryo transfer and egg collection, are not covered.

Success Rate for Fertility Treatments

Because Medicare covers so little in terms of assisted reproductive technologies, you must purchase private cover if you want to limit out-of-pocket expenses when trying to get pregnant.

Not all health funds cover infertility treatments. When treatments are covered, infertility is typically defined as the inability to conceive after one year of trying. Assisted reproductive technologies can be subject to the 12-month waiting period applicable for pre-existing conditions.

Private health funds may also cover some, but not all, components of in vitro fertilization (IVF) and gamete intra fallopian transfer (GIFT).  If you have purchased private hospital cover but not Extras cover, your fund may only pay benefits if there is a Medicare number assigned to the particular service or treatment. Consultations with clinics, ultrasounds, diagnostic and pathology services, and IVF drugs may or may not be covered depending upon the particular policy.

Be sure to carefully review the details of any policy you are considering if you suspect you may require fertility treatments.

How Do Cover Needs Change As Children Get Older?

As children get older, you may wish to purchase different types of health insurance to meet their changing needs. Portability rules permit you to change hospital cover without re-reserving any waiting periods. These rules do not apply to Extras cover. However, many insurers will not make you re-serve waiting periods for Extras cover either, as long as you do not upgrade your cover. If you upgrade or purchase different types of Extras cover, you will be subject to a waiting period before the better benefits kick in. This makes it imperative to shop for cover several months before your child is expected to need a new type of care.

How Do Tax Laws Affect Family Cover?

You are entitled to a rebate for premiums paid for hospital cover if your family income is below a certain level. If your combined family income is below $180,000 and you are all under the age of 65, you are entitled to a rebate equal to 26.791 percent of premium costs. If your family income is between $180,001 and $210,000, then you are entitled to a rebate of 17.861 percent. For a family income between $210,001 and $280,000, you are entitled to a rebate of 8.930 percent.

Health Insurance Rebate Calculator

Depending on your age, family status, and income level, you may be entitled to a Government Rebate on your private health insurance policy. Use the sliders and dropdown menu below to calculate your rebate.

Please select status

You are entitled to a 1% Government Rebate on Your Private Health Insurance Policy.
Base Tier Tier 1 Tier 2 Tier 3
age 65 25.934% 17.289% 8.644% 0%
Age 65-69 30.256% 21.612% 12.966% 0%
Age 70+ 34.579% 25.934% 17.289% 0%

If you choose not to purchase hospital cover, you can be charged a Medicare Levy Surcharge. This penalty kicks in at a combined family income of $180,000.

How Long Can Children Stay On Your Policy?

Your children may remain on a family health care policy until age 24 if they are full time students and are still considered dependents.   When your children leave home and are no longer students or dependents, they will need to purchase their own policy.

Still have questions? Let's talk!

Confused? Not sure if this applies to your situation? Phone us on 1300 643 355 for some free, no obligation advice!

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