Travel Insurance vs Health Insurance

[Renato1]

My local health insurance provider is Defence Health, and when I travel overseas I use Defence Health Travel Insurance which was always way cheaper than anybody else's who I contacted. And I suspend our local membership during the time we are away, and are being covered by the Travel insurance (there seemed little point in paying for double health insurance).

For the last four trips of two to three months duration, the Travel Insurance for the period away always cost me more than the Top Cover plus extras local health insurance for the same period had I stayed at home - I was always paying a few hundred dollars more on the travel insurance.

However, things have changed this trip. Local health insurance premiums have been going up here, but apparently not as much overseas. Whereas I pay $330 a month for local health cover for the two of us, my Travel Insurance is now only $307 a month (it would have been under $300, except for my pre-existing condition).

Has anybody else noticed a contraction in the difference between local health insurance and travel insurance? Or is it just the organisation I'm with?
Regards,
Renato

 

[trippin_the_rift]

Travel insurance (especially medical) will cover you for urgent items - otherwise their goal is to get you to Australia ASAP so that medicare/you can pay the rest of the bills.

Where as private health cover acts like a discount coupon book for private services. It's not really insurance.

 

[Pushka]

I wonder what would happen if you'd cancelled private health insurance for say, a month but had to be repatriated in 2 weeks?

 

[Renato1]

I wonder what would happen if you'd cancelled private health insurance for say, a month but had to be repatriated in 2 weeks?

I'm trying to think of what could happen to us that wasn't bad enough so that we are actually in shape to fly back, but bad enough that we had to stay in hospital in the overseas country if we weren't flying home.

Anyhow, in such an unlikely event, well, I could fly back to Australia and use the public system until the private health suspension was lifted, or just stay in Italy and use their public system (they don't seem to have much of a private system).
Regards,
Renato

 

[medhead]

The point already made is that your travel insurance will get you back to Australia as quick as possible so that you Australian health insurance/Medicare starts to pay. If that means a private medical flight then you'll be flying home if that's cheaper than having you sitting around paying full whack in an overseas hospital.

As for the Italian free public hospitals, they are not likely to be free for non-Italians/non-EU people.

 

[MEL_Traveller]

As for the Italian free public hospitals, they are not likely to be free for non-Italians/non-EU people.

They are under Medicare: Participating RHCA countries

[h=2]Italy[/h][h=3]Your entitlements[/h]You are entitled to subsidised health care for a period of up to six months from your date of arrival. The National Health Service (Servixio Sanitaria naz_onale) provides medical treatment at participating hospitals, clinics and authorised medical centres (conventionati). If you need medical treatment go to the nearest local health centre (Unita Sanitaria Locale - USL).
The address of all USLs can be found in the telephone directory or by asking at police stations, tourist offices or hotels.
[h=3]What is covered?[/h]

• Medical treatment, including specialist services at public or other authorised hospitals and clinics.
• Treatment as a hospital patient in public and authorised hospitals only.
• Immediately necessary dental treatment at public hospitals.

[h=3]What is not covered?[/h]You may need to pay for medicine, diagnostics and other tests.

 

[MEL_Traveller]

I wonder what would happen if you'd cancelled private health insurance for say, a month but had to be repatriated in 2 weeks?

Under Medibank's suspension policy I think there is a minimum time you need to be away (3 months or something?) but in any event, the suspension is only supposed to be while you are out of the country.

In the event you need to return for any reason, the policy is reactivated. With Medibank you used to have to pay one month in advance in order to apply for the suspension, and if you needed to come back and go into hospital you were therefore covered immediately.

 

[Renato1]

The point already made is that your travel insurance will get you back to Australia as quick as possible so that you Australian health insurance/Medicare starts to pay. If that means a private medical flight then you'll be flying home if that's cheaper than having you sitting around paying full whack in an overseas hospital.

As for the Italian free public hospitals, they are not likely to be free for non-Italians/non-EU people.

I was unaware of private medical flights - thanks for that.

The Italian hospitals seem to treat all the illegal immigrants, and there is a reciprocal agreement with Australia - and while my wife isn't in the category, I'm covered because I'm also an Italian citizen (which was a surprise to me on my 18th birthday, when I got conscription papers for the Italian Armed Forces). So I'm pretty sure I'd be covered.
Regards,
Renato

 

[Renato1]

They are under Medicare: Participating RHCA countries

Thanks for that list. When my wife and I finally hit 80, if we are still around, they'll be the only places we can visit as Travel Insurance goes through the roof - and can cost more than the plane ticket.

I might leave Finland, Sweden and Norway on my to-do list till then.
Cheers,
Renato

 

[Renato1]

Under Medibank's suspension policy I think there is a minimum time you need to be away (3 months or something?) but in any event, the suspension is only supposed to be while you are out of the country.

In the event you need to return for any reason, the policy is reactivated. With Medibank you used to have to pay one month in advance in order to apply for the suspension, and if you needed to come back and go into hospital you were therefore covered immediately.

Thanks, that's interesting. My fund definitely suspended for just 8 weeks on one trip, and I'm pretty sure I pay in advance.

I'll have to clarify this point with my fund when I ring up for the suspension - but if it is the same as Medicare's there is no reason to not suspend membership while travelling.

Curiously, when I return from overseas, my fund always insists I fax or email them a copy of my boarding passes from when I left Australia.
Regards,
Renato

 

[MEL_Traveller]

Thanks, that's interesting. My fund definitely suspended for just 8 weeks on one trip, and I'm pretty sure I pay in advance.

I'll have to clarify this point with my fund when I ring up for the suspension - but if it is the same as Medicare's there is no reason to not suspend membership while travelling.

Curiously, when I return from overseas, my fund always insists I fax or email them a copy of my boarding passes from when I left Australia.
Regards,
Renato

Medibank, not medicare (but I'm guessing you're talking about private health).

The only disadvantage for suspensions is the number of times you can suspend per year. I think with Medibank you have to wait 6 months in between suspension periods... so if you have two trips in a year, you might need to pick which one to suspend if you have a waiting period (and if the trips are less than 6 months apart)

 

[Renato1]

Medibank, not medicare (but I'm guessing you're talking about private health).

The only disadvantage for suspensions is the number of times you can suspend per year. I think with Medibank you have to wait 6 months in between suspension periods... so if you have two trips in a year, you might need to pick which one to suspend if you have a waiting period (and if the trips are less than 6 months apart)

Thanks. Lucky for me I'm not that frequent a traveller, but it would be annoying for others.
Regards,
Renato

 

[sanne]

I also believe that you have to have 365 days each financial year of private medical health cover otherwise you don't receive the government discount.

 

[Renato1]

I also believe that you have to have 365 days each financial year of private medical health cover otherwise you don't receive the government discount.

I once heard something similar. But, I've suspended my health insurance for 2 months one year, and for three months on three other years, and never had an issue with the Government private health care rebate.
Regards,
Renato

 

[Pushka]

Isn't there an increased medicare levy if you are over 30 and don't have private hospital for 365 days? You have to state that on your tax return.

 

[Peter D]

Isn't there an increased medicare levy if you are over 30 and don't have private hospital for 365 days? You have to state that on your tax return.

Correct.
It seems the ATO are onto it.

"Travelling overseas

If you cancel your private patient hospital cover while travelling overseas, you may be liable for the Medicare levy surcharge. You should contact your health fund to work out the amount of premium you expect to save by cancelling or suspending your cover and compare that to the surcharge you may have to pay.
Cancelling or suspending cover for yourself will mean that you and your spouse may each still be liable for the surcharge if your combined income for Medicare levy surcharge purposes exceeds the family surcharge threshold – see Medicare levy"

 

[medhead]

The private health insurance section of a tax return also includes the number "365" on the statement from the health insurance provider. I don't think it would be hard to work out the meaning of that number.

 

[Renato1]

Correct.
It seems the ATO are onto it.

"Travelling overseas

If you cancel your private patient hospital cover while travelling overseas, you may be liable for the Medicare levy surcharge. You should contact your health fund to work out the amount of premium you expect to save by cancelling or suspending your cover and compare that to the surcharge you may have to pay.
Cancelling or suspending cover for yourself will mean that you and your spouse may each still be liable for the surcharge if your combined income for Medicare levy surcharge purposes exceeds the family surcharge threshold – see Medicare levy"

That's very good information for all the relatively high income earners.
I'm retired, so I don't have to worry about the income thresholds.
Regards,
Renato

 

[mooingchicken]

Under Medibank's suspension policy I think there is a minimum time you need to be away (3 months or something?) but in any event, the suspension is only supposed to be while you are out of the country.

In the event you need to return for any reason, the policy is reactivated. With Medibank you used to have to pay one month in advance in order to apply for the suspension, and if you needed to come back and go into hospital you were therefore covered immediately.

I rang up to get the facts as im going on a big trip, medibank said a minimum of 2 months, you make a payment of 2 weeks in advance, so once you land back u are covered for 2 weeks, until you have the chance to ring up and tell them your back etc.

 

[mrdctau]

Who in their right mind would buy travel insurance anyway? Surely the sensible thing to do is sign-up for a premium credit card that includes travel insurance and usually a few other tasty things such as a couple of lounge passes, low interest balance transfer, 50K+ bonus frequent flyer points, no fees for the first year, free bottle of wine with dinner at selected restaurants, etc. If you later decide you don't want to keep the premium credit card just cancel it before the fee-free period is up.