Advantages And Disadvantages Of Private Health Insurance

Yes – having a pre-existing condition will not exclude you from being able to have private health insurance. It's illegal in Australia to deny someone health cover based on age or pre-existing conditions. However, there may be additional waiting periods which apply to pre-existing conditions. 

Yes – you can have both private health insurance and be treated under Medicare in Australia. Medicare is the public healthcare system which provides access to basic medical services and benefits for all Australian citizens and permanent residents.  

Private health insurance is an additional form of insurance which provides coverage for services beyond what is covered by Medicare. Having private health insurance does not replace or negate the need for Medicare, as both systems work alongside each other. 

No – it isn’t always possible to have total choice as to which doctor treats you, or which hospital you receive your treatment in. This will depend on factors such as: 

• Regional availability – there may only be one specialist or private hospital of the type you need in your area or state. Having private health insurance does give you the option of travelling to another city or region to see specialists who may not work in your local area 
• Which hospital your specialist works in – the specialist you need to see may have a contract or arrangement with one particular hospital, so if you want to see that specialist, you’ll have to use that designated hospital 
• If you have a medical emergency – in which case you'll probably be transported by ambulance to the nearest public emergency department, regardless of whether you have private health insurance or not 

The entire cost of private health insurance premiums aren't tax-deductible in Australia. However, the Australian Government provides a tax rebate, known as the Private Health Insurance Rebate, which can reduce the cost of your private health insurance premiums and make it more affordable. This can be claimed as a lump sum when filing your tax return or incorporated into your premiums to lower them each month. However, it's important to consult with a qualified tax professional to determine your eligibility and the amount of rebate you may be entitled to. 

If you switch between private health insurance policies and increase your level of cover, you may need to serve additional waiting periods for services which weren’t covered under your previous policy. However, if you switch providers and retain the same level of cover, no new waiting periods should apply.