Post-FIRE Health Insurance? [Australia]

[MsRichLife]

Up until now, we've never bothered with private health insurance. However I've realised recently that without, it we'll be paying Medicare surcharge this year because of our income. The medicare surcharge will probably cost us about $1800 per year while I keep working, unless we take out private health insurance.

DH is already retired and I'll be retired in a couple of years at about 39. I'm after opinions regarding whether some level of private health insurance is worth taking out. What are some of the considerations I might be missing?

Thanks

MsRL

[deborah]

You should be able to get health insurance for less than $1800 a year, so that appears to be a no-brainer at this stage. I have health insurance, but that is more due to inertia than real planning. A few years ago, I decided I was in the wrong insurance (basic rather than top cover), because most of the things that would cause me problems weren't covered. I found a top cover that was cheaper than the basic cover I was in. A few months ago someone was talking about how expensive their cover is, so I looked into mine. It is still cheaper than any I have found elsewhere, but it has closed for new entrants, so that is one reason I am keeping with it for now.

[MsRichLife]

Yeah...getting it now is a no brainer. I'm just wondering what I'd need post FIRE. Guess I have some research to do today.

[marty998]

Health insurance is the go if you don't want to wait for elective surgery. I have a family friend who needs a knee op soon. Without insurance, he's on a waiting list for an undeterminable time.

With insurance it's a case of whenever the surgeon can fit you in around his golf schedule over the next couple of months.

In the end you get what you pay for. Good private cover gives you an additional choice, especially if you're in a bit of pain and don't want to wait it out.

[nora]

We only have it to avoid the surcharge. The cheapest I could find was HIF which was 1743 for two adults and an infant. If anyone knows of cheaper, I would love to hear about it. If you are only working another couple of years it might not be worth doing at all, especially at your young age. A lot of years paying into it and maybe not using it at all.

Also there are often gaps to pay to hospital, surgeon, anaesthetist etc so you still have to fork out more cash in private too.

If you want to get surgery more quickly in the private sector and you don't have private insurance, you can also self-fund it, so that is another consideration. If it is an urgent surgery or emergency surgery it will often be done quickly in public anyway.

I thnk you are probably less likely to get unnecessary tests and treatments, surgeries and consultations in public than in private.

[Ozstache]

Yeah...getting it now is a no brainer. I'm just wondering what I'd need post FIRE. Guess I have some research to do today.

I didn't get health insurance post FIRE as I left my job with a clean enough bill of health (and am actually getting healthier), so I am prepared to self-insure to jump any elective surgery cue if required. Actual medical costs have been low and for the last 12 months for me were $250, none of which would have been claimable on private health insurance.

Don't forget that if you do get private health insurance in FIRE that the years your employer provided you (and DH) the equivalent of private health cover should count as you having had actual coverage over that time. I'm just not sure what paperwork is required to prove this given that I didn't take it up.

[HappierAtHome]

I didn't get health insurance post FIRE as I left my job with a clean enough bill of health (and am actually getting healthier), so I am prepared to self-insure to jump any elective surgery cue if required.

Has anyone here paid out-of-pocket to jump an elective surgery cue, as Ozstache describes?

I'm wondering how easy it is to do this. It's an attractive option.

[deborah]

I didn't get health insurance post FIRE as I left my job with a clean enough bill of health (and am actually getting healthier), so I am prepared to self-insure to jump any elective surgery cue if required.

Has anyone here paid out-of-pocket to jump an elective surgery cue, as Ozstache describes?

I'm wondering how easy it is to do this. It's an attractive option.

Haven't done it myself, but a few years ago a co-worker did it, and it was very easy, and very cheap.

[Ozstache]

I haven't done it yet either. When I was covered for health care by my employer, I asked at a scan appointment I had how long the waiting list was for the procedure and how much it would cost to cue jump to the front. I was told up to a 12 month wait and $900 to change that to ASAP, which I thought was quite cheap. As I need to have this scan every 5 years, after confirming that the 12 month wait is still valid I will just get my referral the year before it is actually due and play the waiting game. I reckon the Dr I am seeing will go for that.

[burrow]

The Medicare system in Australia makes 'self-insurance' a no-brainer in my opinion. Consider 3 things:

1. Any emergency or life-saving care will be free and immediate.
2. Elective care (like knee replacements and back surgery) is also free, but triaged - you may be waiting 12 months or more for that new hip. Private health insurance will let you jump the queue but the out-of-pocket expenses are often significant.
3. If you have PHI but consider yourself healthier (and less risk-prone) than average, your good habits (and good genes) are subsidising higher risk members.
4. The idea that 'private' doctors and hospitals are better than public is mainly spin. The doctors are often the same doctors and the hospitals can be good or not so good in both private and public (a bit like schools). I suppose the main advantage is that you might get a room to yourself but it works out to be a very expensive room (more expensive than a 5 star hotel per night).

As a family of 4 (two boys under 10), we have ambulance cover only, which is about $60-70/yr. I figure that one trip in an ambulance by any one of us over a ten year period makes the insurance worthwhile (minimum fee for an ambulance call-out is $600). Just so happens that we've already used it twice (2 broken arms) in the last 6 years, so we are ahead.

[okonumiyaki]

Also note that you are relatively close to excellent and good value for money hospitals in Penang or Bangkok, if the surgery is elective...