User Pays, User Benefits
The private health care system works together with the public system to provide taxpayers with affordable health care services. Put simply, it assists with meeting the costs of health services that is not covered by the public system. Private hospital cover, dental, optical, physiotherapy and podiatry, you name it, there’s a health insurance fund in Australia that meets your needs.
To comprehend how far the public system stretches, here’s an overview of how it works…
PUBLIC
The public system in Australia comprises of three national subsidy schemes, the Pharmaceutical Benefits Scheme (PBS), 30% Private Health Insurance Rebate and most commonly known, Medicare.
The Pharmaceutical Benefits Scheme (PBS) subsidises the cost of a wide range of prescription medicine. All Australian residents, and eligible overseas visitors, are provided with access to affordable medicine through the PBS.
The 30% private health insurance rebate eases the pressure on public hospitals by providing a subsidy to private health insurance policies of 30% for people under 65, 35% for people aged 65-69, and 40% for people aged 70 and over.
Medicare is owned and operated by the Australian Government and is funded by Australian tax payers. Medicare provides benefits for doctor consultation fees, tests and examinations, some X-rays and pathology tests, eye tests performed by optometrists, most surgical procedures performed by doctors.
Medicare doesn’t cover:
- private patient hospital costs (for example, theatre fees or accommodation)
- dental examinations and treatment
- ambulance services
- home nursing
- physiotherapy, occupational therapy, speech therapy, eye therapy, chiropractic services, podiatry
- psychology (unless as part of a agreed procedure referred by your GP, psychiatrist or paediatrician)
- acupuncture (unless part of a doctor's consultation)
- glasses and contact lenses
PRIVATE
Private health insurance operates in a ‘user pays’ basis, where groups or individuals pay premiums to protect themselves from expensive or unforeseen health care costs. As sugested, private health insurance takes off the pressure of the public system.
And more to come on Wednesday...