Cancelling private health insurance and putting $ in bank instead?

[Shanaynay]

Hello,

I was just wondering if anyone decided that their health insurance wasn't worthwile and cancelled it, and saved the same amount instead?

In four years I have paid almost $4000 in private health insurance.

The only time I used it was for a private hospital stay for 5 days after DD1 was born. Couldn't even use it for the birth as our private hospital doesn't do births, you have to transfer afterwards.

My children are healthy and at the moment have no on-going health issues where we require regular specialists or anything.

I was thinking of just cancelling it and putting the same amount each month into a savings account. Then each $2000 or whatever the minimum is I would put it all in a fixed term deposit.

So if something happened where I did require to pay for stuff, like seeing a chiropractor regularly or whatever, I would have the cash there.

But hopefully I would never need to use it and would get a nice little bonus one day.

Has anyone done this?

What is the downside of it?

As far as I can work out, private health doesn't give you any advantage in getting into a specialist if you need one, does it? You just make the appt regardless, just like everyone iwth health insurance, and just pay for all of it, is that right? :confused:

[forbetoel]

We don't have private health cover. With 4 kids on ne wage, it was one of the things that went, so that I could afford to stay at home. Having said that, I am very lucky *touch wood* to have children with no medical issues, and to live in a Country with a medical system (while not great) that will treat my children straight away if anything were to go seriously wrong.

My childrens health comes first, and I do have the back up cash if anything was needed.

[zenifa]

We are thinking about doing this, as our premiums keep increasing and we will paying about $3000 in the next year if we continue.
Given that I am not having any more babies, and our family is quite healthy - the only thing we use is the 2 free dental checkups a year each and I claim for my contact lenses (this would cost us about $500 per year, so no point in paying out $3000). Besides DH had a hassle from our private insurer in trying to get a claim, which took 6mths to resolve so he wants to get out or change anyway.

If you need to see a specialist, your GP will refer you, you still need to pay to see them (or if it is totally public you are on a long waiting list) and claim back from Medicare.

We just don't seem to get value for money from our private health fund, so we are going to shop around to see what our options are, see a broker and perhaps look at putting the money aside in a high interest type of account so its available if any of our family need any type of medical assistance.

[Shanaynay]

Well that's what I was thinking, 4boys2love, that if anything did go seriously wrong, then we are covered by Medicare.

What sort of things would Medicare not cover, and I would have to pay for?
Teeth, I know, but what else?

[SammieSnail]

We've been contemplating the same thing.
Over four years we've paid $10,080 in private health insurance.

I've used it for my wisdom teeth ($900 instead of $2300 I think)
A D&C ($250 excess)
Hospital stay for 4 days, he was actually born at the public.... ($250 excess for $3500 of sevices I think).
And chiropractic and dental services, with dental last month still costing $1500 between DH and I.

Over 4 years we have only been to the dentist twice, once last year when we were both told we needed fillings that we couldn't afford, and once this year to tell us because we had left it so long we would need root canals.
If we stopped paying $210 per month on health insurance we could afford to go to the dentist!

Both DH and I are missing a front tooth each from childhood and have plates so once we get the cash together and get implants we can drop our cover.

Anyway....

Basically we will only use it for dental now which just doesn't justify the cost per month.
BUT I don't trust myself to put that money aside because we are already giving up other things to pay it.

[MammaMia]

My question would be: would I really be able to put the money aside? Or would I be tempted to use it for other purposes.

My DH required unexpected back surgery with a neurosurgeon a few years ago. We had next to no warning, and the bills would have been much bigger without the private health cover. I doubt we could have afforded it if we had saved money ourselves. As it was our out of pocket was $4000. :eek:

So, I don't look at health insurance as an issue as to whether we are presently healthy, but as a rainy day type policy.

[forbetoel]

Well that's what I was thinking, 4boys2love, that if anything did go seriously wrong, then we are covered by Medicare.

What sort of things would Medicare not cover, and I would have to pay for?
Teeth, I know, but what else?

Anything that is serious is covered. And don't forget about the safety net.

My son had to get his tonsels out 2 years ago, and waited only 2 weeks through the public system, and I didn't pay a cent. His surgeon said if they were not so big he would of wited 2 months, which still isn't bad, as that would only be for kids who were not suffering any ill effects from their tonsels.

I also had a stomach tumor removed a 18 months ago, and paid ziltch.

I think it is one of those ting s taht if you can genuinly afford it then you should have it, as it takes a huge burden off the public system. We just can't afford it now, but maybe in the future.

[lilpearl]

We don't have private health insurance - I simply don't believe in it. However, I certainly don't know of any high interest savings accounts available these days, I think to get interest one needs to look into other areas of investment.

[Mama2Mia]

I thought about doing the exact same thing as well but joined up in January for family hospital and family extras cover.....the only reason we did this is because we would be paying the medicare levy (which everyone has to pay) + medicare levy surcharge and the surcharge alone was almost the cost of our annual premium. By taking out insurance we don't have to pay the medicare levy surcharge.

But in terms of usefullness, we hardly use it! I'll be using it to have our next baby in a private hospital but our out of pocket expenses is going to cost us $2K to do this whereas it costed us nothing to have our 1st bubba in a public hospital. Having said that, i was in a share room for almost 7days and it was VERY uncomfortable because i felt so bad everytime my baby cried and also for some reason i had sooooooooo much wind after having the baby i had to hold it in because i was too embarassed to let it out :p

my thoughts are if you can afford it and it doesn't eat into your everyday essential living expenses, and if you're in a position where you would be liable to pay the medicare levy surcharge, then its worth it. But if you don't have to pay the surcharge and you don't really use it and it is very tight for you to take it out then i'd put that money aside in an interest earning account. I think my husband showed me an interest earning account of 8% the other day so there's some good ones around

[~Emmylou~]

Seriously thinking about this as well.

We're about to take another cut to our income and I think it's going to have to go.

In 2005/6 we got our moneys worth - hospital admission for DD and I had DS - but since then zilch.

I do like having it in case they need anything - the public systems idea of urgent, and my idea of urgent are very different :laughing:

[naiwen]

We have it and have well and truely got our moneys worth.

DS has spent months in the childrens private hospital and seen many private Paeds, specialists etc.

So no way would we cancell it but I realise many do not get their money back.

[Silvana]

Another thing to consider is your tax implications. I think with the new budget it is $150000 for couples and $100 000 for singles that you have to pay the additional levy on top of the normal medicare levy. If you have private health cover, you don't pay this levy.

I think private health cover is expensive also.

[singa06]

I have a few questions. If you 'saved' the money and needed to go to hospital, would you go in as a private patient and pay the full cost as a private patient, or go public.

Unfort we don't have a great public health system and the waiting period could be long for some procedures, therefore by going public you do put more strain on the public system. (Obviously there are families that can't even save at all and rely solo on the public system)

Also although you may be healthy, sometimes 'things' do happen and if not considered urgent, you will wait. Eg my brother had heart problems and although it could of been serious, he still had to wait longer than a private patient for the surgery.

Emergencies go in right away...yes we know that. But medical conditions that require a specialist and treatment will be on a waiting list...

[Chickadee]

I agree with MammaMia that for me it is a rainy day thing.

$4000 over 4 years is a lot, but seems cheap to me. I pay nearly $3000 a year for DD & I, but that is top level cover. We would get hit with the surcharge if we didn't have private insurance. Probably I don't get my money's worth but I like having dental, optical & extras cover for both of us.

You were asking what is not covered by medicare. What about ambulance cover? I think in some states (VIC) it is not covered either by medicare or by other levies. I would hate to have an emergency and then be presented with a bill for the ambos :(

[mummymimi]

The cost of private health insurance may seem high but if you ever get sick or injured and don't want to use the public system you will find it is very expensive to pay your own way through private treatment. My husband had cancer about five years ago and the treatment and operations he had to have over the course of one year cost our insurance company about $500,000. One injection that he had to have four times a day for a week at a time cost $2000 a shot. The $3000 a year that you would be able to save by cancelling your health insurance would take a long time to accumulate into a sum that was large enough to pay your own way through the private system.

[~Bec~]

We don't have private health cover as I'm ideologically opposed to it but we do have some savings and/or access to credit should it be needed.

[Pina Colada]

I have it and I treat it as what it is - insurance. I have house insurance and I hope I never have to use it, and I have car insurance and I hope I never have to use it.

The same with health insurance. I really hope my family are never in the position that we need to claim massive amounts back from our insurer. But I don't know what is around the corner, and I want my family covered should the worst happen.

We pay $3000 a year.

[punkbaby]

We dont have it, my only concern is dental :)

[reAllytee]

We cancelled ours not long after having Boof ... No i lie we downgraded to ambulance cover which we even cancelled probably 6mths later.

We dont have the extra funds to afford the paying out of something ' just in case ' especially now that DP has been retrenched/ fired whatever you want to call it lol yet again.

We do save an amount every month though & we do keep a little stash that allows for things like ambulance or dental otherwise being that most things are still done through the public system even when you are 'private' we see no need. We use some at the end of the financial year if we have a decent amount & have also found that this stash covers all of DP's medical expenses when the insurer doesnt pay so it isnt like there is nothing there iykwim.

So if you can trust yourself to do it then go for it otherwise stick with basic cover. I probably wouldnt be able to trust myself if it were just me cause im a shocker with expenses :o but DP mainly keeps things in order after i do certain things so its always done .... As much as i want to get something new heheh.

[jaq]

In terms of deciding whether or not you need the cover, you need to look at your family situation.

Ours -

Me - braces as child, bad teeth now, regular at osteo
DH - racing cyclist who hasn't been hurt ... recently; sees osteopath, braces as a child, glasses ...
DD1 - likely to need dental work in years to come, might need glasses
DD2 - spent time in NICU, regular checks from paed, has seen osteo ...

We have top of the line cover but it probably paid for itself with DD2's birth alone. And hopefully will save us money in later years when the dental bills start to roll in ...

And when I go back to work, we will be over that $150k ceiling anyway, so there is a penalty to not having cover.

If you don't have any or many of these risk factors, especially if you have finished having babies, then putting the money in a separate account is an excellent idea!

[RaryGirl]

We pay nearly $3,000 per year for our private cover as well .... and I'm like Sissy - it's treated as insurance and I have all insurances in place in the hope that I will never need it.

We'll downgrade ours a little after this baby is born to drop the maternity ..... but other than that we'll always have the cover and then my theory is we'll never need it.

[PRM]

My in-laws cancelled their health insurance years ago and now have $10000 in the bank in case anything happens health wise.

We are about to have our second child and our OB will not deliver the baby unless youa re in a health fund as he only delivers at a private hospital.
Having heard the horror stories of our public hospital, there was no way that we wouldn't have private health insurance.

You could always down grade your health insurance. We need optical for my hubby and dental. They are very important.
We pay around $190 a month for private health insurance and it is expensive but at the moment, for us, it is essential.

[singa06]

My in-laws cancelled their health insurance years ago and now have $10000 in the bank in case anything happens health wise.
.

Would they then go private? So pay a private doc in a private hosp?
Wouldn't most ops/surgeries be more than $10,000? I am not sure, but sorta sounds like a good idea. I am just thinking that if it is $4000 for a gyno to manage and deliver a pregnancy, imagine what more complicated procedures would be!

[Minke]

Services not covered by medicare are optometrists, dentists, physiotherapists and chiropractors.

For those thinking about cancelling their cover and taking it out again when they are older and more likely to need it -

In July 2000 Lifetime Health Cover was introduced. Lifetime Health Cover penalises people who join a private health insurance fund after the age of 30. It does this by adding 2% to the premium for
each year of age over the age of 30. So a person joining a health fund at age 55 will pay 50% more
than a person joining at age 30 (25 years extra x 2% equals 50% extra). Further adjustments have

been made since – the most recent relaxing these penalties for people who have had 10 years of
continuous cover.

As to the cost of surgeries, most serious surgeries couldn't be saved for as they are well into the 100's of thousands, but there are public hospitals and also private doctors that work in the public hospitals (which means you wouldn't be paying for theatre and accommodation costs, which when you consider most private hospitals charge $500/night it must make up a fair whack of private bills).

I'm the same as the PP's who said they treat it as all other insurances - there just in case.

[Shanaynay]

Personally I can't really liken health insurance to house insurance or similar.
With house insurance, if you don't have it and something happens, well you are stuffed. There is no help available.
Here in Aus we still have Medicare (I know it doesn't cover everything but it does cover life-threatening accidents and emergencies etc...) so that is something to fall back on.

I have already downgraded to the lowest level, as it's all I can afford really. So you can imagine the amount of stress it causes me paying that bill each month and not really being able to justify doing so. If I was saving instead, it would still be difficult, but mentally I think I would be less stressed about it.

I talked to my mum about it and I was a bit shocked to hear what she told me. Since I was born they've paid out over $200,000 in health insurance.
Dad has never used it.
I have never used it.
My sister had braces. (She also has broken a few bones but all that was just done in the emergency room).
My mum had day surgery on her little toe, and gets optical (which is capped of course so when she loses her glasses, which is a lot, she has to pay for the whole lot anyway).
It made me feel a little sick. I mean that's the cost of a house! :dizzy:

I would just die if in 25 years I worked out those figures. :crying:
But if I save the lot instead, well that's money that I may have to use some of (braces etc...) but hopefully have a whole chunk left...

singa06, no I probably wouldn't go private and pay for a private doctor if something happened unless there was big reason to. I know that may sound selfish that I would be choosing to put more strain on the public health system but TBH I just want to look out for myself right now :o

[singa06]

I have already downgraded to the lowest level, as it's all I can afford really. So you can imagine the amount of stress it causes me paying that bill each month and not really being able to justify doing so. If I was saving instead, it would still be difficult, but mentally I think I would be less stressed about it.



singa06, no I probably wouldn't go private and pay for a private doctor if something happened unless there was big reason to. I know that may sound selfish that I would be choosing to put more strain on the public health system but TBH I just want to look out for myself right now :o


Fair enough!

I mean that is what medicare is there for, people who can't afford PHI.

But if someone earned A LOT of money (like over $200,000 or something) i would be pretty peed off if they were milking the public system!

[Shanaynay]

^ Haha I assure you that's not me right now :o

If I could easily afford it I would just keep the basic cover at least... but I can't easily afford it, and it's stressing me out!

[singa06]

Before Dh got his pay rise, there was no way we could have afforded it. But once we have a baby and I am home, then we might have to consider our level of cover.

[Areca]

DH wanted to cancel our health but I was (and am) dead set against it. We downgraded but we do get use out of ours - we claim our gym memberships, we use osteopaths and DH has massages that he can claim etc. Sure we could save for a JIC but how much would we need? What if something happened and we all needed something at once? $10 000 isn't necessarily going to go too far. And what happens if something happens while we're saving up? Then what?
I had shocking teeth as a kid and had braces, I still need work done, what if one or all of our kids have my mouth and my problems?
I think the one that sticks out in my head that makes me say no way is that when my mum had a hysterectomy she went private, was booked in for the next week. My aunty, who was in agony and it affected her day to day life was not an emergency and was put on a 6 month waiting list. She had her booking date etc. (after waiting 6 months) and then it was cancelled last minute, due to other surgeries taking priority. It was another 3 months. She had three kids to look after as well. They had money put away, but not enough to cover the surgery. I couldn't make my kids suffer for something for that long.
So basically, I have way to many what if's? that float through my head whenever DH thinks about it! We will always have private health cause I couldn't be comfortable with not having it!

[singa06]

I think the one that sticks out in my head that makes me say no way is that when my mum had a hysterectomy she went private, was booked in for the next week. My aunty, who was in agony and it affected her day to day life was not an emergency and was put on a 6 month waiting list. She had her booking date etc. (after waiting 6 months) and then it was cancelled last minute, due to other surgeries taking priority. It was another 3 months.

:iagree:

If it is not an emergency, but you are in PAIN, you have to WAIT and that can possible cause complications (and quality of life).

[doulacara]

Fair enough!

I mean that is what medicare is there for, people who can't afford PHI.

But if someone earned A LOT of money (like over $200,000 or something) i would be pretty peed off if they were milking the public system!

I disagree. Health should be free for everyone. Many countries have free universal health and we are one of them. The US is not, and their health system is not one we should be aiming to emulate.

I sincerely believe that if we start to look at Medicare as just for the poor, then it will become even crapper. Who funds stuff for poor people!

It is really only since the introduction of the PHI Rebate that we have been convinced to believe that we should pay for PHI if we can.

We have had basic hospital PHI for the last 5 years because it was cheaper to pay the premium than Medicare surcharge. Now the income threshhold has been lifted to 150K we no longer have to pay it so will drop our PHI. In 5 years we have never used it - that's about 4K down the drain. :(

There is a dental clinic at my local hospital which I can take my kids to for free for check ups. Some of them will need orthodontic work in a few years, so we are going to put some money aside. My DH broke his ankle about 6 months before we took out PHI and required surgery. He went private and it did cost us about $3000, but this was before the Safety Net was introduced, which would bring that sort of cost down in the future.

Not trying to be argumentative, really, just get quite fired up this issue. :devil6:

[Lollie86]

I think the one that sticks out in my head that makes me say no way is that when my mum had a hysterectomy she went private, was booked in for the next week. My aunty, who was in agony and it affected her day to day life was not an emergency and was put on a 6 month waiting list. She had her booking date etc. (after waiting 6 months) and then it was cancelled last minute, due to other surgeries taking priority. It was another 3 months. She had three kids to look after as well. They had money put away, but not enough to cover the surgery.

Thats exactly why we will never cancel it. I like knowing that in situations like that, we will be covered almost immediately.DF works for a health insurer and its amazing how many people cancel and then they need to go to hosp quickly but cant rejoin bc they have waiting periods.

You still wait if you are a private patient but not as long as a public.

[Pina Colada]

[quote=DoubleAce;2750078]
I think the one that sticks out in my head that makes me say no way is that when my mum had a hysterectomy she went private, was booked in for the next week. My aunty, who was in agony and it affected her day to day life was not an emergency and was put on a 6 month waiting list. She had her booking date etc. (after waiting 6 months) and then it was cancelled last minute, due to other surgeries taking priority. It was another 3 months. She had three kids to look after as well. They had money put away, but not enough to cover the surgery. I couldn't make my kids suffer for something for that long.
quote]

This is exactly (one) of the reasons why I insist on having private health insurance. To me, waiting lists such as this, are ********. And it is not just "Non-emergencies" that incur an appauling wait. "Emergencies" can be made to sit in waiting rooms for hours if not days before being treated.

My Brother sliced a massive chunk off his hand (including nerves etc). My rushed him to the local public hospital, where they cleaned him up and dressed him, and told him to go to Cairns Base Hospital (over an hour away), sign in, and wait to see the specialist. They said to be there at 8am the next day, and there was no guarantees he would get in that day, and be prepared to go back the next.

That is when my SIL said they were private, and they said "oh!, why didn't you say earlier". The hospital rang the specialist, and they were told to get straight to the (private) hospital, they would be operating that afternoon.

Also, a family friend, when he was 13, had his leg virtually ripped off (all of these are farming accidents if you were wondering :laughing:), it was hanging by a flap of skin at his calf. He was treated as a private patient, and it took over a month, but they saved his leg. He was told that if he was in the public system, he would have lost it, they would not have perservered with it - it would have been amputated.

Anywho, sorry to rave on. But it is reasons like this I will never be without PHI :ecomcity: ;)

[singa06]

I disagree. Health should be free for everyone. Many countries have free universal health and we are one of them. The US is not, and their health system is not one we should be aiming to emulate.

I sincerely believe that if we start to look at Medicare as just for the poor, then it will become even crapper. Who funds stuff for poor people!

It is really only since the introduction of the PHI Rebate that we have been convinced to believe that we should pay for PHI if we can.


Not trying to be argumentative, really, just get quite fired up this issue.


I agree with a lot of what you said. I am just concerned about the waiting periods for those who are not in an emergency situation, but in a lot of pain. They have to wait because the public waiting list is too long. If some of those people on the waiting list could afford PHI, then the list would be shorter therefore allowing those in a lot of pain that can't afford PHI go in sooner.

Maybe the government should be doing more for the public system to avoid these waits. Maybe make PHI more affordable!!!!!!!!!!!!!!

[singa06]

To me, waiting lists such as this, are ********. And it is not just "Non-emergencies" that incur an appauling wait. "Emergencies" can be made to sit in waiting rooms for hours if not days before being treated.

My Brother sliced a massive chunk off his hand (including nerves etc). My rushed him to the local public hospital, where they cleaned him up and dressed him, and told him to go to Cairns Base Hospital (over an hour away), sign in, and wait to see the specialist. They said to be there at 8am the next day, and there was no guarantees he would get in that day, and be prepared to go back the next.

That is when my SIL said they were private, and they said "oh!, why didn't you say earlier". The hospital rang the specialist, and they were told to get straight to the (private) hospital, they would be operating that afternoon.

Also, a family friend, when he was 13, had his leg virtually ripped off (all of these are farming accidents if you were wondering :laughing:), it was hanging by a flap of skin at his calf. He was treated as a private patient, and it took over a month, but they saved his leg. He was told that if he was in the public system, he would have lost it, they would not have perservered with it - it would have been amputated.

Anywho, sorry to rave on. But it is reasons like this I will never be without PHI

:eek: OMG are you serious!
I am shocked!

[mumma bear]

I don't think i would ever do this. My Dad recently had a hip replacement and the total cost was well over $200,000 for the op and post care. I don't think i could ever save that amount and the wait list in the public system is a couple of years for that op. I know that is an old people thing but there are plenty of other things that cost heaps and can be unexpected.

Ds broke his arm and that cost about $5,000.

[Pina Colada]

:eek: OMG are you serious!
I am shocked!

:yes: Completely true stories. I live in regional queensland though, and the public health system here is well known to be seriously lacking. It is on the front pages of the papers regularly. It is beyond lacking actually :no:.

Maybe it is different in other areas - but these are my own stories (IYKWIM) that influence my own choices in regard to PHI. ;)

[NancyBlackett]

Maybe this is me being a bit of a weirdo, but part of the reason I have private health insurance is so that I am one less person being a burden on the public system when I really don't need to be. I think if I can afford to pay for my health care then I should. That way someone who can't afford it PHI doesn't have to wait behind me in a waiting list.

I don't think any of our State Govts are in a position to fund hospitals to the level they need for tiny or no waiting lists so if I can take myself out of that equation meaning I get out of the way of someone who needs to rely on the public system then I think it is my responsibility to do so.

Not that I think that Dh and I doing this will change the world, but if it means one less person has a long wait then it's worth it. Same as not claiming Dr's appts on Medicare - me not claiming back is hardly going to prop the system up but if it means there's one less rebate being claimed by someone who doesn't need it and that can then go to a mother with a sick child I think it is a good thing.

[Sparrowgal]

here's my two cents worth...

As a health professional, who works in the public and the private system, you often see stories like Doubleace's and it's not uncommon. It's not that we don't care because you're public, it's because there are often more urgent life threatening things happening and we can't do everything at once.

Private health insurance is for you if you don't like to wait for surgery, and would like your surgeon of choice to do your operation for you. This is really good for you if you are sporty and get injured, or you're worried about waiting for weeks for cancer surgery. Also good if you like physio, dental, eye stuff done.

The public system is adequate if you don't mind waiting for surgery. And also though the specialist may be present or contactable for your surgery, he/she may not be actually doing your operation, their registrar (training surgeon) will do it if they are capable enough (they woudn't let them do it if they weren't capable) and the same goes for the anaesthetist, they will also likely be a registrar, not the specialist themselves. This bothers some people, and if it bothers you that training doctors do your surgery, then you should go private.

My family is healthy and when you're a health professional you usually get "mates rates" and can get in to see doctors quickly, your choice of specialist (kind of like a professional courtesy or something). I pay my private health insurance because I feel like LucyB.

When I had my baby, i had her as a private patient in the public hospital - because one of the good things about public hospitals is that there are always doctors (registrars) around in an emergency if something goes wrong on the ward. If you're in the private and something goes wrong, your surgeon or anaesthetist could be 20 minutes away operating on some other person before they get to you. So I didn't burden the public hospital because PHI paid for my stay, but at least I know I was in a safe place.

Hope that helps for people who wonder about health insurance.

Gosh that was more like 50 cents worth... sorry for such a long post!

[TinyStar]

We have never had private health as DH doesn't see the point.

DH has had 2 major eye surgeries in australia. There are only a certain number of specialist opthamologists who can perform the procedure, EVERYONE is put onto the waiting list for the op regardless of which system they go through, the surgery is done in the same hospital. Public patients go to the day ward and are sent home in the afternoon, private patients can go across the road for a night hospy stay and claim from insurance.

So same procedure, same doctor, same operating theatre, PH people can have a nice 5star hospy stay too.

Dh also needed a lot of dental work (after not seeing the dentist for 20 years) and it cost loads. You would never be able to claim it back as it was all dont in the same year so you would reach your ceiling pretty darn quick and not be covered in most policies anyway.

Did you know you can claim back 25% of all private health bills you paid for in full with your tax? This includes dental, but does not include the first $1500 you spend.

[singa06]

here's my two cents worth...

As a health professional, who works in the public and the private system, you often see stories like Doubleace's and it's not uncommon. It's not that we don't care because you're public, it's because there are often more urgent life threatening things happening and we can't do everything at once.

Private health insurance is for you if you don't like to wait for surgery, and would like your surgeon of choice to do your operation for you. This is really good for you if you are sporty and get injured, or you're worried about waiting for weeks for cancer surgery. Also good if you like physio, dental, eye stuff done.

The public system is adequate if you don't mind waiting for surgery. And also though the specialist may be present or contactable for your surgery, he/she may not be actually doing your operation, their registrar (training surgeon) will do it if they are capable enough (they woudn't let them do it if they weren't capable) and the same goes for the anaesthetist, they will also likely be a registrar, not the specialist themselves. This bothers some people, and if it bothers you that training doctors do your surgery, then you should go private.

My family is healthy and when you're a health professional you usually get "mates rates" and can get in to see doctors quickly, your choice of specialist (kind of like a professional courtesy or something). I pay my private health insurance because I feel like LucyB.

When I had my baby, i had her as a private patient in the public hospital - because one of the good things about public hospitals is that there are always doctors (registrars) around in an emergency if something goes wrong on the ward. If you're in the private and something goes wrong, your surgeon or anaesthetist could be 20 minutes away operating on some other person before they get to you. So I didn't burden the public hospital because PHI paid for my stay, but at least I know I was in a safe place.

Hope that helps for people who wonder about health insurance.

Gosh that was more like 50 cents worth... sorry for such a long post!


THANKS FOR ALL THAT INFORMATION!
Very interesting.

[RHJ]

DH and I never had Private health insurance till recently. DH has had stomach problems for years, and when finally a doctor put 2 and 2 together and realised it was gall stones (we had seen 3 different "specialists in over 5 years) we were told it would be another 6 month minimum wait to get it out via the public system. And as we said, it was not urgent, but he was in pain usually once a week from it, and would be so bad he would be rolling on the floor. So we decided to spend the extra money and get it done through the private system and pay for it outright. Just over $4000 out of pocket (after medicare rebates for the doctors etc) And that was a straight forward operation. Only in hospital for one night etc. I would hate to think what it would have cost us if it was something more complex. My eldest DS has MASSIVE tonsils naturally, so we are worried that if he ever gets toncilitis that he will have to have them out, and we would want that done right away. Also having 3 boys, i am sure there will be many a sports injury to come to be covered! Our public hospital is great, but i would prefer not to have my family wait in pain if we can afford not to!

As others have said, it is like any insurance i guess. You really hope you never have to use it!

[Scout]

My question would be: would I really be able to put the money aside? Or would I be tempted to use it for other purposes.

My DH required unexpected back surgery with a neurosurgeon a few years ago. We had next to no warning, and the bills would have been much bigger without the private health cover. I doubt we could have afforded it if we had saved money ourselves. As it was our out of pocket was $4000. :eek:

So, I don't look at health insurance as an issue as to whether we are presently healthy, but as a rainy day type policy.

:iagree: wholeheartedly! It's one thing to put the money away but to not touch it....:laughing:, I guess it depends on how disciplined you are.

It does all depend on circumstances and whether you are willing to take the risk. Risk is what insurance is all about.

For us, we can't afford to take the risk. For me, it has actually meant the difference between life and death twice.

[zenifa]

I don't think i would ever do this. My Dad recently had a hip replacement and the total cost was well over $200,000 for the op and post care. I don't think i could ever save that amount and the wait list in the public system is a couple of years for that op. I know that is an old people thing but there are plenty of other things that cost heaps and can be unexpected.

Ds broke his arm and that cost about $5,000.

You'd be surprised to know that joint replacements are not just an 'old people' thing.

When I lived in the UK, I worked in the public health system for nearly 5yrs and prior to that I had worked in the Aust health system.
For the last two years I was there I worked in Orthopaedics and had access to the best in the world in joint replacements (those who operated on the royal family, and had people come from all over the world to be treated by them) and incidentaly while I was there my own hip problems started to exacerbate.
At the time, my parents paid in PHI in Aust for me knowing that at some stage I would need surgery.
I had the option of having the worlds' best operate on me in the UK (as an employee I would of have private health for free in the hosp I worked) but I still chose to come back here to Aust and use my PHI for my hip replacement surgery. My prosethetic itself was worth $50 000 - I had gained enough knowledge and got enough advise to choose my prosthetic hip, and my surgery and post-care would of been at least another $50 000.

Since then I've had two babies privately, via c/s (due to my hip issues), so I have certainly gotten my $$ worth from PHI and can see a place for it.

I am seeing a health insurance broker this week to look at our options as our PHI is now so high we need to reconsider keeping it.

[SomewhereOverTheRainbow]

here's my two cents worth...


When I had my baby, i had her as a private patient in the public hospital - because one of the good things about public hospitals is that there are always doctors (registrars) around in an emergency if something goes wrong on the ward. If you're in the private and something goes wrong, your surgeon or anaesthetist could be 20 minutes away operating on some other person before they get to you. So I didn't burden the public hospital because PHI paid for my stay, but at least I know I was in a safe place.

Hope that helps for people who wonder about health insurance.

Gosh that was more like 50 cents worth... sorry for such a long post!

Well said Sparrowgal.
I too work in the public health system and I don't have private health insurance. I live in a country area so everyone who comes into hospital comes in through ED anyway. Often people who have PHI will request to be taken to the private hospital but it is always up to the consultant. I know many many consultants who will not let their patients go to the private hospital if they are too sick as they believe the nursing care is better at the public and also if the patient is really sick in a public hospital there is 24hr care and the registrars and interns can do a lot of the running around, and the consultant will not get phone calls at 3am etc. Also, there are often no beds at the private hospital and they will pick and choose which cases they take. I had them refuse a patient once who was on hourly eye drops as they 'couldn't be expected to be able to give him eye drops every hour'. They will also not take patients with certain infections.

Also we have no 'private' rooms (we have single rooms but they are usually used by infectious or pallative patients) and when people make demands stating they are a 'private patient' I get to explain to them that it makes no difference in this public hospital (the only difference is they get to pick their consultant). I like working in the public system because I give the same care to everyone regardless of whether they are homeless or well off.

I think PHI would be useful if I lived in a different area or if I was older with health problems. I would also consider getting it if it cover GP visits etc. I don't feel bad about using Medicare (not that I really do very often!) as I pay a lot of tax and even though I will more than likely pay the medicare excess levy this year I would rather do that than have it go towards Medicare than the money-hungry insurance companies.

And as a side note, my mother-in-law got private health insurance to get bilateral knee replacements and spent almost everyday in the private hospital crying because noone would help her out of bed or bring her a pan and she ended up wetting the bed after 3 hours of ringing for a nurse.

[veve]

oh no no no .. I couldn't do it ..

when I was in year 8 .. my tonsils were so bad that I was on medication and missing school a MINIMUM of a week a term .. just so I could cope .. mum pushed the GP to refer us to a specialist - friday we saw the specialist .. MONDAY (three sleeps later) we had the operation... at the time .. the public waiting list was 18 months ... although your tonsils are rarely life threatening .. in that 18 months .. I would have been in considerable pain, and mum would have spent several hundred dollars on MORE medication for me .. instead within days they were out.

- my grandfather has had several heart attacks .. he has private cover, and was given surgery immediately (apparently heart attacks etc are often rated on levels .. and he was considered level TWO .. which .. means he would have ot wait .. while all the level ones were done- or eeeek . untill he BECAME a level one... ) being level two .. he would have had to wait over a year .. instead .. he was operated on within the week..

IF my grandfather had PAID to go privately at the time (and this is over a decade ago) - it would have cost $25000 ..

it would take YEARS of you saving to put that in the bank account .. $1000 at a time ..

its just not worth the risk to me .. having the cover makes me much more relaxed (the dentist has already told me that when his adult teeth come through DS1 will probabyl need braces.. sigh) .. we go to the dentist .. with no charges every year .. and get discount health products, and discounted dental work..

wouldn't be without it (which is the RACQ slogan :laughing:- I would be without EITHER cover)

xx
Jen

eta - Nic236- you MIL must have been in a dodgy hospital .. sheesh .. I've been in private hospital four times .. mostly for fairly major ops (cyst, d/c , two c-sections) and honestly .. I compare my experience with staying in a resort - I hate leaving the hospital, the attention I have received has been THAT good. I'm sorry to hear she had a horrid experience.

[mytwoangelsC&A]

Hello,

I was just wondering if anyone decided that their health insurance wasn't worthwile and cancelled it, and saved the same amount instead?

In four years I have paid almost $4000 in private health insurance.

The only time I used it was for a private hospital stay for 5 days after DD1 was born. Couldn't even use it for the birth as our private hospital doesn't do births, you have to transfer afterwards.

My children are healthy and at the moment have no on-going health issues where we require regular specialists or anything.

I was thinking of just cancelling it and putting the same amount each month into a savings account. Then each $2000 or whatever the minimum is I would put it all in a fixed term deposit.

So if something happened where I did require to pay for stuff, like seeing a chiropractor regularly or whatever, I would have the cash there.

But hopefully I would never need to use it and would get a nice little bonus one day.

Has anyone done this?

What is the downside of it?

As far as I can work out, private health doesn't give you any advantage in getting into a specialist if you need one, does it? You just make the appt regardless, just like everyone iwth health insurance, and just pay for all of it, is that right? :confused:

Hi there i can fully understand where you are coming from we do it very tight at the moment and not paying health insureance would make things much easier. However i have been in private HC for about 5 years and yes it has been a lot of money! Last year i had a baby that had some problem who is doing extremely well now. She required heart surgery and he bill currently at 11 months is $65,000. The things is her sergury still would of been done even if we were public but once she is an adault and the RCH won't be looking after her care she will not get private HC as know one will insure her with a bill that will prob be far more than what it currently is!

[zenifa]

Saw the PHI broker and got lots of great advice.

There is the issue of opting out and going back in later when we're older and for eg if we opt out for 5yrs, when we go back in, we pay an extra 16% on top of the premium and it just goes up for each year we are out, so that is something to consider.

The broker had access to all 38 health funds, it didn't cost us anything and we are under no obligation to change. It was great to find out about other funds and compare the levels of cover and cost.

We were given 4 options - one is $12/month less, the other 2 were $55-60/mth less and one is $76/month less than what we pay now and our cover is almost the same (two of the funds exclude obstetrics and orthopaedics).

In short its definatley worth shopping around, as we are changing and saving $76/mth is $912/year which is a massive difference to us, with still a high level of hospitals and extras cover!!