Private Health Insurance - save instead

[DavidMc]

I'm 31. I don't smoke, rarely drink and I regularly work out at the gym.

For a few years now I've paid around $75 per month for basic singles cover. In total I've paid a few thousand dollars by now and the one time to claim $50 back I had grief because my month old receipt was too faded to read (I admit it was hard but still readable if you held it in the right light). The second time I tried to claim with a very easy to read receipt it was denied as I purchased the medicine overseas (where it was much cheaper!).

I thought it would come in handy when I'm going to have kids - however a friend of mine (who is a few years older than me) found that he still had to fork over something in the order of $5k for private so they ended up going public anyway!

As it stands right now I'm not sure if it's worth it especially as they're talking about removing the 30% thing. However, I understand it becomes a whole lot more 'worth it' when I'm older.

Does anyone have any positive experiences of where they've thought 'thank god I had private health insurance!'?

I can't help but think I'll be better off just saving my $900 per year into a special offset account to put towards any private procedure I opt for later in life. Whilst I know anything can happen to anyone, and I do have a public system that can help me for that, my 'extra insurance' can be me ensuring to live a safe and healthy life.

(As I contract employee and property investor I usually aim for my taxable income to be around $50-55k per year).

 

[Propertunity]

David, No-one takes out health insurance hoping to make a claim

It is there (if you take it out) to be used on the off-chance. Sometimes perfectly healthy people have genetic disorders start to affect them later in life???

The public health system works well if you are really sick or injured. But if you just need elective surgery - you can be on a waiting list for 6 months or years - while you suck on pain killers on a daily basis.

Self funding health insurance, if you choose to do so, is admirable, but I doubt you'd be able to save up enough to pay for some of the really expensive good-gear operations offered these days.

Its your call.

 

[wylie]

I would never risk not having private cover. With three kids, it is of value to us as a family. We are generally healthy, but just one really bad "situation" could be enough to make such a difference. I don't ever want to have to join a two year queue to have something done that could be done immediately (even paying a gap).

My oldest boy had a very annoying problem of excess sweating on the palms of the hands which has always bothered him and now he is training as an architect it was particularly bothersome, having to draw and constantly having to wipe his hands and have the paper smudge or curl up. Even shaking hands was very embarrassing. Nobody wants to shake hands with a wet, clammy hand.

A trip to a specialist meant he went into hospital twice to have a "sympathectomy" where keyhole surgery removes the nodes that regulate the sweat to all parts of the body. They did one side, and a week or so later, did the other. Two trips to hospital. Surgery, anaesthatist, specialist, etc. Purely something that was "chosen" to be done, and not a life threatening issue. I am not sure if he could ever have had this done in the public system, but if so, I am quite sure he would be very low down the queue.

Cost to us was "nada". Difference to his uni and general "comfort" level was "priceless".

For your $900 a year it is cheap insurance, should anything bad ever happen to you.

I have heard that some things like hip replacements cost many tens of thousands of dollars if you had to pay for them. If you are in pain, the last thing you want is to be told you can have the operation, but you need to wait another three years.

Much as I would like to save the money we pay into private health insurance, things would have to be very bad for me to do without it. I look at it like house insurance, car insurance etc.

 

[imonmyway]

We finally took up private this year, we have to pay an extra couple of thousand in taxes if we dont and the insurance isnt much more a year, after i claim glasses/ contacts, dentist and physio i am actually better off but with the comfort of having private to fall back on in case of some major problem arises. By the way I did a lot of research before I signed up and found that Peoplecare were the best they are fantastic to deal with and very competitive. (I have no affiliation with this company I'm just a very impressed customer)

 

[buzzlightyear]

DavidMC, do you insure you car?

 

[steveadl]

I'm 31. I don't smoke, rarely drink and I regularly work out at the gym.

Same here, except I'm 28.

I have private health cover and wouldn't be without it. I barely get to use it except twice a year at the dentist and an occasional chiro visit, other than that never been sick, never been in hospital. I would not be without it however - I have it for the unforseen incidents, because when they happen, I sure as hell don't want to be in a public hospital.

Even if I need the emergency equipment at a public hospital, that's fine - but when my life's been saved, ship me off to a private hospital thanks. Also don't much like the idea of having to wait to have 'elective' surgery should I require it one day.

Just another insurance bill to add to the pile. When I add up how much I pay in all the different types of insurances, it's quite scary - best not to think about it. Speaking of which, meeting by broker today for business policy renewal, yipee!

 

[josko]

I'm like you, Wylie...with three kids it's too risky!

Although, I think MBF must really dislike me! There is not a month that goes by where I don't make a claim.

My latest was orthodics for my 11 year old. My husband also claims monthly for an Osteopath.

For me, it is too expensive NOT to have it.

Regards JO

 

[rugrat]

Going against the grain here - I have never had private health insurance. We have looked into it quite a few times, however it just hasn't been worth it in our veiw. At least not at this point in time. As to how good or bad the public system is, well it really depends on where you live as much as anything else. We may reconsider in the future, who knows. But at this point in our lives it is simply not worth it. I am 27yrs old and the only time I ever even need a doc / hospital is when I am pg or the kids need one - in which case under the public system it is all free, if we were to go private in these instances we would actually have to fork out our own money to cover what the private doesn't.

I am pg at the moment and going through the system at the private hospital as a public patient - it is costing me nothing. I know one of my pg friends is also going through the same system at the same hospital as a private patient (no difference in how we are treated) and she has to fork out about $5000 of her own money after all the rebates etc, even though she doesn't get anything extra.

 

[DavidMc]

DavidMC, do you insure you car?

Funny you should ask.

I drive expensive to insure cars that aren't really worth that much. My last car I sold for $11.5k and was around $1400 per year to insure.

I did a defensive driving course ($99), had a very good security system on it, always made sure it was in safe condidition (tyres/brakes/shocks) and paid the $10 to park it in a secure park rather than on the street at night when I could.

It was broken into once which cost around $1700 to fix. I owned that car for 4 years.

Maybe that's why I'm thinking this way about health insurance.

I know it's a gamble, and a gamble with my health of all things. The question is, is this gamble worth it?

So far it sounds like it could:
- reduce the waiting list on an essential procedure I'd get for free anyway (i.e. save a few years of being uncomfortable, or if I didn't want to wait I could just pay if I had the funds).
- allow me to have something like the sweaty hands thing done for free instead of me paying for it (again which I could just pay for).

Plus I am subject to the terms and conditions of the insurance company (i.e. will they actually pay when I feel I need it?)

If I got the next 10 years without paying that's at least $9000 in my savings kitty, in todays dollars not including any removal of the 30% or increase in real cost of the premiums. That could pay for the majority of operations surely?

In all seriousness I'll probably end up renewing, I'm just playing devils advocate and promoting some outside the box thinking on the subject.

Challenge everything I say!!

 

[Pushka]

I'm 31. I don't smoke, rarely drink and I regularly work out at the gym.).

Hm, I have a family member, who doesnt smoke, rarely drinks and works out at the gym. He was a professional athlete at the age of 23 when he was diagnosed with cancer! (Well before Lance Armstrong's time) And was operated the day it was diagnosed, privately of course. Hate to think how much the hospital bill was for 2 weeks intensive care plus 4 weeks recovery then in and out!

Now, a few decades later he is still fit, exercises at the gym still doesnt smoke and recently had a fall merely crossing the road. Broke his elbow, required an ambulance, surgery within a day, physio, more surgery. I think that bill is up to around $7000 now! For a simple fall.

That is just his expenses. At the age of 30 I ruptued a disc in my back; if I didnt get surgery asap I risked paraplegia (well, one side anyway) because the disc ended up being lodged against my spinal cord when it ruptured. I was operated on within the week. Twenty years later I still have some nerve damage but at least I can walk. And then I have major abdominal surgery, within the week of diagnosis.

And then there are the kids surgeries.

And guess what, we are actually a healthy family! Now, anyway!

Dont drop the health Insurance.

 

[quoll]

We got rid of our health insurance after baby #1 was born, that cost as a couple of grand. The 2nd and 3rd kids didn't cost as anything and we got exaclty the same level of care, the only difference wife was in a ward so had other people / babies around instead of being in a private room with no one around.

Over the last 18 years we have used the public system a few times and a very good system it is, we are very lucky in this country. Currently we either go public or pay cash for the procedure depends on what needs doing, how urgent, etc. From what I can see we are in front $$ wise with this strategy.

As we age we are more likely to opt back into the private health insurance system, might wait until no kids to look after.

Trying to compare Health insurance to Car insurance is like comparing apples and pears, they are different. At the end of the day it's a guess and a risk assesment and the SANF.

Cheers
Graeme

 

[csc]

private insurance in Oz is a sham....

100% cover, yeah right!

If you pay insurance you should not have to fill a gap..

Each side ie: doctors and insurance outlets blame each other for costs..

its a circus..........

ill take my chances with the public system thanks....

unless your a sick person your better off putting that money aside each month in a special account...........

and if your involved in an accident, say car accident you go straight to a public hospital usually anyway...

id sooner go to the PA in Bris than any private hospital for critical injuries..............their ICU is the best in Qld......if you die their theres no hope anywhere else in the private system in qld...

 

[wylie]

and if your involved in an accident, say car accident you go straight to a public hospital usually anyway...

If you are in an accident, they are not even going to ask you where you would like to go. Of course, they will take you to wherever they think best. I don't think any of us with private insurance would suggest it is taken out for "accidents".

id sooner go to the PA in Bris than any private hospital for critical injuries..............their ICU is the best in Qld......if you die their theres no hope anywhere else in the private system in qld...

I reckon if you die at the PA, there would be no hope anywhere else either .

 

[vbplease]

For a few years now I've paid around $75 per month for basic singles cover.

David,
Have you tried going through Iselect? basic cover should be about $50/month.. "you'd be a puffin muffin to choose priv health ins any other way"

I also find it hard to believe you've been quoted $1400 a year to ins a car $11.5k.. have you tried budget direct?

 

[Aaron Sice]

my wife has had three kids - i watched with no actual work involved there - and we would recommend that if you want kids and the grandparents can be there, go public.

not as namby-pamby as private, and bugger the room benefits, because private - each time - cost us about $3000, whereas our public cost us $87 - AFTER CLAIMS.

speaks volumes really.

however, private for kiddies rocks. you go to hospital with a broken leg or car accident or knife injury or whatever, and you're covered and get seen to properly.

 

[Aaron Sice]

I also find it hard to believe you've been quoted $1400 a year to ins a car $11.5k.. have you tried budget direct?

geez that's cheap.

with my driving record, my $5000 Kingswood was going to be $2100 a year full comp.

shannons got me in for $400.

 

[DavidMc]

I also find it hard to believe you've been quoted $1400 a year to ins a car $11.5k.. have you tried budget direct?

I've checked it all out. Trust me, I'm more passionate about my car than my property investing!

It's was a modified turbo import. Most companies won't even do them, especially Budget. Shannons (who normally insure imports) won't cover me because I don't have a garage. My options are Just Cars, Famous Classic (over $2k+) and Lumley Special Vehicles (who I'm with).

Now my newer version of the same thing I'm paying $1550pa, car insured for $26k. Unfortunately too many idiots both a) steal and b) smash these types of things. I'm 31 and haven't even had a speeding ticket (hard to believe in a ~300kw car!).

Learn all about my story and research on skylinesaustralia.com.

 

[INVSTOR]

I've been researching this lately also. I've asked a couple of health professionals their opininion and there seems to be good and bad with Private or public options. One comment was same as Prop's comments. Another comment was same as CSC'S comments and another opinion was that Private hospitals are profit making so less staffed, although if you want to speak to your doctor at any time you can. I recently spent 5 days in public hospital. I left with many unanswered q's about my health. eg They would tell me I had an infection, I'd ask the nurses about 5 times what sort of infection and they'd say they'd get back to me and never would. I found out a couple of weeks later when I saw GP that I had pnemonia. I was on morphine that made me really nautious. At about 2 in morning I had no sleep so asked nurse for another type of pain killer and anti-nautia pill. She said she'd give my pain killer but not the other pill and I should just go to sleep. I told her I couldn't sleep cause I felt like vomiting. About 5 mins later she let me have the other pill also. I doubt you'd be treated like that in private hospital. Currently if I were really ill I'd pay my own way if I had to go private but still contemplating taking out private health insurance.

 

[DavidMc]

We got rid of our health insurance after baby #1 was born, that cost as a couple of grand. The 2nd and 3rd kids didn't cost as anything and we got exaclty the same level of care, the only difference wife was in a ward so had other people / babies around instead of being in a private room with no one around.

Over the last 18 years we have used the public system a few times and a very good system it is, we are very lucky in this country. Currently we either go public or pay cash for the procedure depends on what needs doing, how urgent, etc. From what I can see we are in front $$ wise with this strategy.

That's what I'm hearing too. My sister went public for both of her kids at Dandenong hospital (lower class area) and she said everything was fantastic.

Again, in the end I'll probably stick with it - the purpose of my investing is for all of these little 'luxuries' (a funny word for it, but I don't think one could call it a necessity).

 

[weg]

We have top extras cover but not private hospital yet we always use private except when I had the babies and we chose to go public for non financial reasons.

Private Drs. have usually charged us less than the fee that they charge their private pts and with the rebate for procedures from Medicare (yes you still get that if going private) I've worked out it is probaby a much bigger savings in the long run if you pay your way.

There's still hospital to pay but rarely do they need to keep you in that long nowadays anyway. Any life threatening emergencies go through the major public hospitals.

A friend who had melanoma in recent years went private as I do and only paid around 3K for this treatments and consults in the first 18months. If you work out the yearly amount you pay for cover and any gaps most people would pay that and more in that same period.