private health insurance

Question 1

description

Answer 1

-optional medical insurance that can be taken out in addition to Medicare. users pay a premium to join a scheme.
-members pay a premium in return for payment towards health related costs not covered by Medicare
-people can also opt for extras cover which can cover services not provided by dentists etc, not covered by medicare.

Question 2

incentives- lifetime health cover

Answer 2

those who take out insurance after the age of 31pay an extra 2 percent on their premium for every year they are over 30.

Question 3

incentives-phi rebate

Answer 3

based on income, some people with phi are eligible for a rebate (or refund) from the federal gvt, av of 30 percent but is income tested

Question 4

incentives- Medicare levy surcharge

Answer 4

higher income earners who do not have private health insurance pay a higher premium. this is income tested so those with high incomes pay a higher surcharge (1-1.5 percent)

Question 5

incentives- age based discount

Answer 5

under this initiative, insurers have the option of offering young people aged18-29 a discount of up to 10 percent for hospital cover. the discount allows for a 2 percent reduction in premiums for each year.

Question 6

advantages

Answer 6

-enables access to private hospital care
-lifetime health cover incentives

Question 7

disadvantages

Answer 7

• costly in terms of the premiums that have to be paid
• qualifying periods apply for some conditions, such as pregnancy