Health & Family Private health insurance

I said the same thing Another quote come out as $6000 per day stay.

Problem with insurance is, you don't need it until you need it.

 

Mater Mirage (or so it was nicknamed several years ago)

 

This is my approach to all insurance - look at the big picture. By this I mean I insure for the big stuff, and forget the small.

Travel insurance - I make sure the coverage has public indemnity and good hospital cover. I've heard of stories before of people who have had strokes overseas and had to pay like $400k in bills. I don't care about crap like lost luggage and iPhones and stuff. 400k I can't afford. A new iPhone I can.

Health - again I look at the big stuff and forget crap like extras. I can't afford to be put in long waiting lines if I'm in non-life threatening pain but a few hundred or thousand bucks in dental care physio? Screw that. NO EXTRAS. Insurance is about risk protection. I'm not at risk of going bankrupt if I have to pay a few grand for some small stuff. And certainly not some random physio.

Car - only third CTP. I can afford to buy another car if I total it. 20-30k isn't going to send me broke. But destroying a Ferrari and causing someone serious bodily harm and the resultant law suits will.

House - house only, not contents. 50k worth of contents won't send me broke. A $400,000 house will.

Rental cars - never pay extra to reduce the gap. What's the gap, a few thousand bucks? Again, it won't send me bankrupt.

"Extended cover" insurance for consumer electronics, phones, games etc - god no, if you can't afford to replace an $80 game because of a scratch, you've got bigger fish to fry.

People have no concept of the point of insurance. It's for the big stuff, not the small. Who gives a crap about an iPhone if you're traveling, or some physio treatment, or a discount on prescription glasses, or a freaking couch and large screen tv. It's about preventing you from going bankrupt or waiting in long queues when you're in agony but it's not life threatening. 10-20-30-40-50k bills will hurt. Yes it will. But it won't send you bankrupt. That is THE most important thing to keep your mind on as an investor - the difference between what hurts, and what wipes you out.

 

I do If it's just for "feel good" it's not big deal. But I do take the trip to treatments with or without insurance. Taking the extras actually ended up cheaper as I need to make the trip anyway.

 

My approach is if it's part of the package by all means take it. Just don't go out of your way to pay for it. Unless you have a specific injury and need lots of prescription glasses or physio or whatever extras cover don't go out of your way.

 

I have comprehensive insurance on my car, I am ahead due to my car being donked twice by an idiot hitting me and then claiming it to be my fault, both times they were in cars worth less than $2K which they didn't care about, I never would have gotten the money out of them if I had to chase them, the insurance company fixed my car both times, not sure if they ever got the money from the other party.

The repairs to my car have cost more than the premiums I have paid over the duration I have owned the vehicle, I am ahead by about $4K, it's both the money and my time, Insurance saved me messing around getting my car fixed and getting the money back.

 

My point is this - people often talk about how they don't take up health insurance because they don't use the extras. But extras are GARBAGE for 90% of people, so you can't exactly make an argument on the basis of extras!!

It's like saying "I bought a smart phone, which I like, but I paid extra for some silly over-priced case to protect it. I don't think I'll bother buying an smart phone anymore..."

Case in point:

 

The best and worst of health funds

There is a full report by AMA there that provides numbers of payouts by different health care providers. HBF is doing great, Medibank is okay, NIB is not so great.

Personally with Medibank, like @Bran, once baby is out, we'll likely move to some niche health fund provider, i.e. AHSA/ Avant's/ Doc's health fund.

 

We're with HCF family of 5. $3600 premium for this year. We have 2 kids with medical conditions and we're getting our moneys worth at the moment.

 

I'm aware of my coverage. I am 27 and don't need anything other than the dental side at this point. As for the dental coverage, I love my dentist and am happy to pay the gap as he is amazing and I trust his work.

 

To be honest I couldn't tell you what's in our package, we didn't "select" any extras but it's the top cover so who knows what's included. It's also many years old and I know the products have changed so I don't think I could even find documentation on line on what's in my package.

Changing or cancelling is not an option for us though as we simply will not get insured for the same price anymore, we are both older now and we both have a history so what we have is what we stick with .

I completely agree re: added extras though, I wouldn't add an extra if given the choice.

 

Have you considered your total cost per year (premiums + gaps) vs dentist bills?

 

Yeah when I hear people arguing against insurance on the basis of extras I roll my eyes. Don't bloody choose them then! Sometimes they're part of the package, but a lot of times you don't have to select them.

 

If the person going to pay Medical Levy Surcharge - I'd say private health insurance is well worth it.

Surcharge for tier 1 is $900
Health.com.au of 75% back (incl. extras) cost $1200 a year
So additional $300 compared to paying surcharge

Excess for using Massage, acupuncture and physio/osteo = $300 (rebate $925)

i.e. yearly additional $600

The same treatments without the insurance will cost me $1200+
Excluding optical (used all up last year) and dental, and add surcharge on top

 

Yeah. And I've questioned whether it is worthwhile. But given my family's medical history, I don't want to not have it.

 

Whould you like to take out the extended warranty with your new Samsung LED TV???

 

I have CBHS.
It started with "I don't want to pay Medicare surcharge"
Now its evolved to, I will elect to use Private Health Insurance as believe that it will help our hospitals.

Perhaps some medical professionals can provide some insight as to whether that is true or not. Because I would really like to think that going in as a Private Patient (when i can go in as a Public patient for free) is actually helping the hospital / system.

 

I'll join doctors health fund most likely.

surgeons put a price on their time, training and expertise and a reasonable (?) price per procedure. If your fund pays this, no gap. If not, gap. Don't like the gap? Go public. Easy. I'll look after you in both (I've never had anyone complain about my gaps - except the rich guy said I was too cheap).

This year, I've seen a physiology, remedial massage, sports medicine dr and a dentist. We've had a baby and two separate paediatricians in two hospitals, lactation consultants, paediatricians surgeon. My wife a dermatologist and excursions. My boy speech path and ENT. Private has already paid for itself for years, with no days waiting for any of it. That's my choice. Could have gone public for free. Most years, I'll be happy if I use none of it. Most, if not all doctors I know have private cover.

I will go for a colonoscopy soon, and will pick my private colonoscopist.

Unless you are uber rich, I won't do anything other than minor surgery for an uninsured patient. One unplanned night in ICU...

 

Yes, I originally organized insurance for exactly this reason. Then dropped it after a year when I did my tax return and realised its just like negative gearing - pay out $$$ to get back $