'Adulting' Time: What I Need to Know About Health Insurance

This post is presented in partnership with Australian Unity.

At a certain age in every young Australian’s life, something frightening happens.

It isn’t getting your first job or finishing high school.

It’s the sudden, confusing and downright spooky transition to becoming an adult, or ‘adulting’, as it is sometimes referred. It can begin by being kicked off your parents’ private health insurance and ends with you doing your own washing. Yes, for many young folks around the country, ‘adulting’ can be a real horror show. Look away now if you don’t have the stomach for it. You’ve been warned.

What many young humans beginning the process of adulting don’t grasp is the need to look after one’s health. In Australia, we are extremely lucky to be graced with an amazing public health system that can take care of all the basics. Unfortunately, however, some necessities such as dental care and ambulance cover aren’t always covered by this system and can set you back hundreds (or if you’re really unlucky, thousands) of dollars.

We spoke to real-life adult and Senior Product Manager for Retail Healthcare at Australian Unity, Danielle Rawstorn, to demystify the murky waters of private health insurance.

What is private health insurance? Can’t Medicare just cover me?

While the public health system, known as Medicare, can be a godsend, it doesn’t quite cover everything. Think of it more as your basic blanket cover. If you get hurt or sick, you can go to a public hospital, and they’ll fix you up, depending on the attention required.

A major difference between private and public health cover is that, with public, you can’t choose which doctor to see and you’ll need to go to public hospitals (which, on average, seem to have longer waiting times). Not so with private health insurance.

Danielle explained that the wait for public care can sometimes take more than 12 months. “If something happens, we kinda want to get back on our feet ASAP and not be living with discomfort,” she said.

Another major plus with private health insurance is that it can include some extra benefits that aren’t covered under Medicare, such as optical, dental and physio. “With private health insurance you can actually get some instant reimbursement so you don’t have to pay the whole bill yourself,” Danielle explained.

This means you could get those frames you’ve been pining for and only pay the gap, or maybe have that physio visit after a footy or netball injury that you didn't think you could afford.

A few private health insurers also have no-gap agreements with certain dental care providers, meaning that with some dentists, you’ll literally pay nothing for your regular check-up and clean, subject to your yearly limits, of course. That’s something to make you smile on those dreaded dentist trips.

But I’m still young and agile. Isn’t health insurance for older people?

Danielle said this is a common assumption of younger people, but it’s incorrect. She said most people think, “‘Oh, I’m young, I’m indestructible, when am I going to need these things?’” and that complacency can sometimes lead to trouble. “The reality is that when you’re young and indestructible, you do more crazy things, and you’re more likely going to find yourself needing to visit the physio,” she said.

Those unexpected bills that come through at unanticipated times are what private health insurance can help most with. Otherwise, that trip to the physio to treat exam season writer's cramp or RSI might set you back $100 or more.

Danielle also stressed the need to look after your teeth: “Trust me; the visit to the dentist is less painful now than what it will do to your credit card later in life.”

What kind of cover do most people my age get?

Danielle explained that the most common cover for younger people and students is a basic level of hospital and extras cover. “This allows you to have that accident cover and key things like wisdom teeth or tonsil removal [in a private hospital]… plus it also gives you an entry level of extras, which gives you up to $1,000 dollars back per year [across common services for those under 30],” she said.

Danielle says the most popular policy at Australian Unity among students is the Basic Saver Combination package, which includes the options mentioned above.

So, are you ready to take on the responsibility of adulting?

At the end of the day, adulting doesn’t have to be so scary. It just takes a little bit of extra effort (i.e. research, yuck), but it could also mean the difference between ending up with a broken leg but not a broken bank account to match.

Student Edge members can get 7% off¹ health insurance with Australian Unity. Follow the link to find health insurance that's right for you. ¹7% discount includes all retail discounts and is available only when paying by direct debit. The discount is not available through brokers or comparators, and excludes Overseas Visitor Cover.

Photo: NBC