Understanding your health insurance policy can be a tricky business. While we all know that it is crucial to have a health insurance policy to ensure financial stability in case of an unexpected medical expense, most of us fail to comprehend the policy fully. As a result, even with an insurance policy in place, a lot of people end up paying a huge amount of money out of their pocket. The only way to make sure this doesn’t happen to you is to take time and understand your health insurance policy and eliminate all misconceptions about it.
Citizens of Australia typically have two options when it comes to health insurance – Medicare and Private Health Insurance.
Misconceptions about Medicare
Healthcare Is Free
Medicare does not provide free healthcare. However, the method of payment is significantly altered. Instead of paying the premiums to an insurance company, you pay taxes which are collected by the government. The collected amount is then used to pay for the healthcare of the general population. The amount paid is determined by the tax brackets that are specified by the government.
The health care system operating within the United States of America is one directed towards self-provision. It’s designed in an exceedingly manner within which its individuals are for the most part liable for their own health care prices at their own choice. However, there is a different approach to health insurance in Australia. All citizens get coverage from a public insurance plan that covers things like hospital stays, doctor visits, and prescribed drugs.
The value of accessing the health care system with public insurance is low: There are not any copayments or deductibles for publically financed hospital visits. But alongside providing public coverage, Australia encourages residents to enrol in a private plan too.
Fewer Benefits are covered With Employer Insurance
This is another misconception about Medicare which leads people to drop employer-sponsored insurance. However, that’s not the case. It is important to understand the benefits and advantages of both plans before making a decision. Keep in mind that ALL residents are eligible for basic health services that are provided by the single-payer system. However, employees in a higher salary bracket are encouraged to invest in additional private coverage to gain access to private hospitals.
Misconceptions about Covered Benefits
It is important to know which medical expenses are NOT covered by Medicare. Misconceptions about covered benefits can lead to major out-of-pocket costs. Here’s a list of 5 medical expenses that are NOT covered by Medicare.
- Dental fees
- Hearing aids
- Medical expenses incurred overseas
- Ambulance fee
- Home nursing
Misconceptions about Private Health Insurance
Private Health Insurance Policy in Not Required When You have Medicare
Medicare covers several medical services. However, with a private health insurance policy in place, you can avail better and quicker medical services. You will experience an overall better medical care without having to wait for months to receive treatment. According to a report by the Australian Institute of Health and Welfare, the average waiting time for a hip replacement is around 73 days in a public hospital. Moreover, you will have access to private doctors and hospitals.
You Don’t Need to Update Your Policy
Medical needs change with time. This makes it important to regularly review your insurance policy and update it according. When it comes to private medical insurance, plans are designed keeping in mind the needs of single individuals, couples, elderly, etc. Therefore, the task of choosing the right medical insurance according to your needs falls to you.
The Cost of Private Health Insurance Outweighs the Benefits
The cost of private health insurance may initially feel like a burden on your budget. However, the consequences of not having private health insurance can be grave. Even if you are in optimal health, there is no way to make sure you won’t face a medical emergency. The bottom is line is that it is unwise to test your luck and risk not having a good private health insurance plan.
These are some of the most common misconceptions about health insurance policies. If you have any other confusions, make sure you take time to eliminate all misconceptions and concerns about your policy. It will only help you make better financial decisions in the future when it comes to medical expenses.