Get private health insurance? Or just grow a savings account?

[Shanaynay]

I used to have private health cover with Defence Health but scrapped it as we didn't have any health issues that would benefit from using private cover really.
I really really really can't stand outlaying money and not seeing a return :o

Anyway I feel pressured to have private health insurance but again, as we are now - we don't have any health issues that would benefit enough from having private cover to make it feel worth paying the monthly premium.

I am a little worried that my children could need braces or something in the future, or something else that woud mean crazy long waiting lists in the public system.

However as I said, paying money out and never seeing again makes me feel sick :o. Finances are not great at the moment so this would be a huge thing for me.

So I'm wondering if it could make sense to pay the exact amount that I'd pay to a health insurance company into a savings account. When the savings get big enough, put into a fixed term deposit etc...

So if anything does happen I use that money to pay for it (or to go towards). If not, well - bingo :D

Does anyone do this?

[Merla]

We have considered this numerious times, but chosen not to.

If I were to put money into a savings account instead of PHI I would just put money for extras only and still have mid level hospital.

The big risk is hospital admissions for non emergency surgery, such as knee replacements, invasive testing, hip surgery, heart repairs (non emergency), scoliosis of the spine, tonsils removed, physiotherapy after an accident. These surgeries can have huge waiting lists in the public system (my brother at age 5 was told he had a 12 month wait to have his tonsils out after having 3 specialists confirming he was suffering increasing hearing loss as a result of his tonsils. My grandmother has been waiting 3 years on the public list for a knee replacement.) and are very expensive to go private with no insurance. 5k to have tonsils out, 35k knee replacement, 150k spinal alignment etc. For us the $x amount per week is like house insurance, we keep it and hope we never have to use it, but are very grateful that we have it should something go wrong. \

The savings account works with extras because they are usually a limited amount of money, a few k for dental work, a few hundred in physio. However if you child fell off the monkey bars and ended up damaging their knee badly, you were placed on a 2 year waiting list or 35k private surgery it becomes a lot harder to save for, because it could be a 2k exercise or it could be a 100k to go private if the need did arise.

[zombiekitty]

I agree with Merla

[pumpernickel]

We ditched ours a couple of months ago and now put it into a savings account. I feel way better about it. :D :yes:

[Shanaynay]

Mmmm I think I'm thinking more like 'extras' - chiro, physic, dental etc...

I think I just kinda assume that if any thing major was to go wrong, that public health would step in adequately. Maybe I have too high a expectation of public health though?

I'm really not sure. My family and I have never had any personal experience with the public system letting us down significantly so I think it's hard for me to think about that side of it....

[zombiekitty]

An emergency will have you seen to right away in a public hospital but don't forget, people die all the time on public waiting lists.

[Merla]

Mmmm I think I'm thinking more like 'extras' - chiro, physic, dental etc...

I think I just kinda assume that if any thing major was to go wrong, that public health would step in adequately. Maybe I have too high a expectation of public health though?

I'm really not sure. My family and I have never had any personal experience with the public system letting us down significantly so I think it's hard for me to think about that side of it....

For extras if you don't think you will "use" enough each year to get your moneys worth then save the money.

My family have had a very bad run with the public system and waiting lists, emergencies have never been a problem (apart from waiting 6+ hours in the ER to be seen with a bleeding head wound) its the non-emergency stuff that really got us. DH's best mate at 20 needed his spine realigned (scoliosis) he was having difficulties walking, public they told him 12 months, private 2 weeks. They charged his private health insurance an excess of 150k for the 7 hour surgery and rehab after, he was out of pocket 2k for the whole thing and back on his feet within 2 months.

[TripleTime]

Do you have ambulance cover? If nothing else ill always have ambo cover.

For us the risk isnt worth it, i go through glasses like no tomorrow & my back is on the out. I see the same as house & car insurance.

All in all i agree with Marla.

[bellalika]

You could just take out extras and put extra savings aside in an account. Best of both worlds?

We have private health. If we cancel it there are very few funds that would cover me and my epilepsy as it is a preexisting condition. It has come in handy but costs and stretches our already tight budget.

It has come in handy for big things. I had my babies in a private hospital with a fantastic ob and midwifery team who knew all about my epilepsy and how to best deal with it (the local birthing centre put me at high risk). My big boy got one-on-one care in the SCN, but may have gotten this elsewhere. My hubby got his broken nose (cricket ball) fixed in 4 days, requiring only a manipulation under general, not a 12-18 month wait and needing to have his nose rebroken. My knee surgery was booked for 10 days after all other options had been explored with my orthopedic surgeon (bizarrely for a surgeon he hates to cut.).

It comes in handy with extras too. Physio and massage for my back. Dental, especially handy when hubby needed 11 fillings, one for each year he hadn't been to the dentist. My baby boy is currently seeing a chiro who has helped so much.

My big boy also has limited hearing in his left ear. We'll find out more in September when he does his 3 1/2 year old peg test, but gromits have been mentioned more than once.

I know all of these things could have been handled through public health, but I preferred the shorter wait times and seeing the same person all the time.

[Pina Colada]

I view health insurance the same way I view car insurance, or house insurance. I have never claimed on those insurances, and to be honest, will be happy if I never have to. If I decided to cancel them, and 'save' the money instead, well I'd probably be fine to replace ruined carpet, or a fused oven, but if the house burned down, I'd be screwed. Although the public system would take care of you in an emergency, it is the elective and 'non' emergency surgery that I am concerned with. I will not risk public wait lists, and to pay outright for surgery to avoid a waiting list would be tens and sometimes hundreds of thousands.

I don't really understand why people get upset and not getting to claim much through their health insurance. I'm happy not to, means we are healthy :hyper:

[Pina Colada]

DH's best mate at 20 needed his spine realigned (scoliosis) he was having difficulties walking, public they told him 12 months, private 2 weeks. They charged his private health insurance an excess of 150k for the 7 hour surgery and rehab after, he was out of pocket 2k for the whole thing and back on his feet within 2 months.

This is a good example of why I will hold on to my PHI. Another is my brother sliced the palm of his hand off, and he was told by our local regional hospital to go to the Base hospital in the morning, and wait to be seen by the surgeon, but if they couldn't get in to see them they would have to go back every day until they got in. My SIL pointed out they were private patients, and he was in the private hospital and in surgery within 4 hours.

[zombiekitty]

Great post piña!