Three Birds with One Stone - Oz, OS and Lifetime Cover Health Insurance

[werdnanostaw]

My Oz Health Insurance is with HIF. I am overseas for 9 months of the year in 3 month chunks. HIF will only allow me to suspend my HI every 12 months so I end up paying for 6 months cover that I can't use.

That's 12 months from date of return so that's 9 months of cover I can't use!

I know HBF allows it every 6 months but that still isn't good enough.

Does anyone know of an Australian HI provider that will allow you to suspend more often than this?

My main source of income is tax free superannuation so getting hit with the Medicare levy due to lack of cover hopefully isn't an issue.

Since I am overseas so often I would really like to get HI that covers me in Oz and OS on the same policy. I guess it would have to be an insurance company that operates outside the Oz HI system. My sister lives in the UK and I believe she has cover with Bupa that covers her anywhere in the world including the UK.

Does anyone know of a health insurance company that provides what I'm looking for?

Even if such a policy exists I may not wish to take it up because I would lose my Lifetime Health Cover and then have to pay the extortionate surcharge back to my 30th birthday when I eventually return to Oz fulltime.

However, due to a misunderstanding of what cover she had my partner is subject to the surcharge so I would be interested in getting it for her.

Does anyone know of any way to get HI that works in Oz that isn't subject to the Lifetime Cover surcharge?


Andrew Watson
Perth

 

[simongr]

To avoid the medicare levy surcharge you have to have a complying Australian health insurance policy that is provided by a fund regulated by PHIAC. As such a global policy provided by an overseas provider (like your sister's which is actually an International policy rather rather than a standard UK policy) would not help you avoid the medicare levy surcharge.

If you do however suspend your membership whilst overseas you are considered to not have PHI when it comes to assessing for the Medicare levy and Medicare levy surcharge - however you are still considered to be covered for the purposes of Lifetime Health Cover.

In terms finding an alternate provider a list of PHI funds in Australia can be found here: List of health funds

I would do a few Google searches on the phrase: suspension private health insurance Australia [fund name] and you should be taken directly to their FAQs on this topic.

I would however counsel making a decision on PHI based solely on this suspension criteria is a risk in itself and should be part of your decision making process only.

 

[simongr]

Just to answer your specific questions:

Does anyone know of an Australian HI provider that will allow you to suspend more often than this?

Refer my answer above.

Does anyone know of a health insurance company that provides what I'm looking for?

You would have to buy an ex-patriot style of insurance. They are horrendously expensive.

Does anyone know of any way to get HI that works in Oz that isn't subject to the Lifetime Cover surcharge?

Lifetime Cover surcharge is not a phrase that exists in the PHI lexicon. There are the medicare levy and medicare levy surcharge. There is also the Lifetime Health Cover Loading. If you suspend your insurance with any of the funds then you should be considered covered in terms of assessing whether you are liable for LHCL. However remember that if you come back to Oz after your 30th birthday say at age 32 you will only have to pay an additional 4% rising to 24% by the time you are 42. At age 42 you would then no longer have to pay LHCL.