How to navigate Australia's healthcare system and save on costs
Australia is fortunate to have a robust healthcare system that provides access to numerous free or low-cost medical services funded by the Government. This makes us the envy of many other developed countries, especially the United States, where more than 70% of Americans believe the healthcare system has failed them, according to Time Magazine.
The foundation of our healthcare system is Medicare. It offers free or subsidised medical, optometric (eye care), and public hospital services for all Australian citizens, residents, and even some overseas visitors. To finance the Medicare system, all Australian taxpayers pay a Medicare levy based on their income — higher earners who don't have private health insurance pay an additional levy.
Medicare also supports doctor bulk-billing. However, the availability of bulk-billed medical practices is often limited because the Government's bulk-billing incentive payments are considered insufficient to cover operational costs.
Furthermore, the Pharmaceutical Benefits Scheme (PBS) subsidises the cost of a wide range of medications, making them accessible and affordable for all Australians.
However, even with Medicare and the PBS, medical costs can still be high in Australia. Here are some tips to help keep those costs under control.
1. Visiting the Doctor
Although bulk-billing medical practices are becoming increasingly rare, it's worth checking if any are near your location. You can save around $40 per visit by choosing a bulk-billing practice. If you can't find such a centre, you can still ask if they offer bulk-bill services for telehealth (phone consultations) or returning appointments such as blood tests or scan results.
2. Medicare Safety Net
You may have to bear significant costs if you regularly visit the doctor for check-ups and tests. However, you can reduce these expenses by using the Medicare Safety Net. When you spend a certain amount on medical bills in a calendar year, Medicare will increase the amount you receive back. If you're an individual with no dependants, you don't need to register for the Safety Net because you're already covered. However, if you're a couple or a family, you should register with Services Australia. This will allow you to combine your expenses, which will help you reach the threshold limit faster. The Medicare Safety Net thresholds for 2024 are explained in detail here.
3. Ask for generic medications
It's always a good idea to ask your pharmacist if generic versions of your prescription drugs are available. They're usually cheaper than brand-name drugs and are just as effective.
4. Private Health Insurance
Medicare usually covers the full fee for in-hospital services if you are a public patient. For out-of-hospital services, it covers 85% of the scheduled fee. Private health insurance offers three main types of cover:
- Hospital cover includes things like accommodation and theatre fees.
- Extras cover include services like dental and physio.
- Hospital + Extras cover is a combination of these two (above).
With most private health policies, you can:
- Choose your own surgeon or specialist
- Have treatment in a private hospital or as a private patient in a public hospital
Insurers will provide information on what they will cover and how much they will pay. This will help you select a level of cover that suits your needs and budget. You can visit privatehealth.gov.au to compare different insurers and products.
Private health insurance can save you money if you need many extras, such as dental and physio. It can also be a good option if you or a family member must spend a lot of time in the hospital, require a procedure done quickly, or want to avoid public hospital waiting lists. Just check your cover regularly to ensure you're not paying for extras you don't need — and compare insurers at least every 12 months.
5. Concession cards
If you meet the eligibility criteria for any concession cards, such as the Health Care Card, you may be able to get further discounts on medications and other health services. Services Australia provides detailed information regarding who can qualify for a concession card and how to apply.
6. Preventive care
One of the most effective ways to save money on medical costs is by preventing them from happening in the first place. By taking preventive health actions now, you can avoid severe health issues in the future. These actions include regular exercise, eating a healthy diet, avoiding smoking or excessive drinking, and having regular check-ups, vaccinations, and screenings (often covered or subsidised by Medicare or private health insurance).
You never need it - until you do
We hope you or your loved ones never face the situation where you need costly medical care despite having Medicare and other healthcare safety nets. However, we understand that accidents and illnesses can happen at any time and come with a hefty price tag. If you are in such a situation, we know you may be emotionally overwhelmed, but you don't have to be financially stressed. We're here to offer a helping hand whenever you need it. Just look at our cash loans to $5,000 to see how quick and easy it is to borrow additional funds. Once your loan is approved, the cash will be deposited into your bank account within a few hours - so you can focus on your recovery while we have your back!
*This is general information only.