Why Getting Your Own Private Health Insurance May Actually Be Worth It

Basically figuring out if you’ll use all those extras you’d be paying for 

This article is part of our series 'What You Wish You Knew as a Student'. You might find in-article games where you could play to win. To read more articles from this series and find more games, head here. 

Sometimes life throws curveballs at you and you end up going to the doctors for something specialised before realising that Medicare doesn’t cover it and you have to pay it out of pocket. Annoying, right?

It’s a real pain that might make you question whether or not you need your own private health insurance.

 

What’s the point of private health insurance?

Australia’s private health system is meant to complement Medicare by taking pressure off the public system. There are certain medical things that are covered by Medicare like GP visits, getting medicines and accessing mental health care.

People who can afford private health are incentivised to pay for it to put less pressure on the public health system. The Australian government has implemented policies designed to push people in the private system like the Medicare Levy Surcharge (MLS).

You might already have private health insurance.

If you’re living at home as a full-time student then chances are you’re probably already under your parent’s health insurance as a student-dependant or dependant.

A dependant is someone who is an unmarried person under 31 who’s financially dependant on their parents. Student dependants are the same except they are also studying full-time.

Is private health worth it?

For students, it depends on your health needs and age. You can compare private health insurances with this website to check which policy is best for you.

Some of the potential benefits of private health insurance include shorter wait times for elective surgery or specialist care, choice of providers and access to private hospitals, extras cover like dental, physiotherapy, etc.

For international students, Overseas Student Health Cover (OSHC) is required for the duration of your student visa. OSHC covers hospital and some medical cost, but it excludes dental, optical and most extras. If you’re an international student after more cover, you’re going to have to fork out for private health.

What are the biggest costs to consider for students?

If you’re not under your parents’ plan and for whatever reason you don’t have private health but you’re considering it, the major out-of-pocket health expenses for most young people would be mental health support, dental, surgery and optical care.

If you’re likely to use multiple services like wisdom teeth removal, glasses and regular dental then health insurance would probably be worth it. Plus, you can get shorter hospital wait times and private rooms if you need it.

For international students, private health is necessary if you want extra coverage beyond OSHC.

Private health isn’t exactly worth it if you’re not anticipating any big procedures and you can wait to use public or free services. Eye tests are bulk-billed at places like Bailey Nelson, and you can buy glasses online to get cheaper frames.

For mental health support, if you’re looking for a cheaper alternative to going to a psychologist from a GP referral – you can reach out to your university counsellor for free.

So, is it worth it for me?

If you’re a domestic student under 31, physically healthy, and not earning above the MLS income threshold, private health is more about faster treatment and extras not included in Medicare. Plus, you may already be covered under your parents’ policy.

If you need dental or other allied health services, extras cover could lower your total spending. If cost is a big concern or you rarely need healthcare outside of what Medicare covers, it may not be worth it to take out your own policy.

But it’s a decision you’ll have to make after weighing out all the options 😉