private health insurance Flashcards
what is private health insurance?
PHI is an insurance where members pay a premium (fee) for assistance with payments which are not covered by medicare.
PHI provides cover for private hospital cost, in hospital treatments and anything not classified an essential part to healthcare
what does this extra cover?
denists
Chiropractor
physiotherapy
what is covered by PHI?
PHI covers the cost of admission to public and private hospitals. It also covers the cost of out and in hospital costs not covered by other forms of healthcare
how is the PHI funded?
PHI is funded by the consumers paying the premium. often the private health services overcharge, making PHI pay and you have to pay the gap
how is phi different to medicare?
medicare is different to phi as it only covers the costs of healthcare which is classified essential, like GP consultations unlike dental appointments. phi also provides access to health services like chiropractors which medicare does not
incentives to take out PHI
people having PHI is essential in order for the public medicare system to work. Some incentives were created like the: PHI rebate, Medicare levy surcharge, lifetime health insurance cover.
what is the PHI rebate?
the phi rebate was created in 1999 as the government introduced a 30% rebate for consumers premiums.
what is the medicare levy surcharge?
the medicare levy surcharge states that anyone earning over 90000 a year and families over 180000 have to pay an additional 1-1.5% tax if they do not take out PHI
what is the lifetime health insurance cover?
the lifetime health insurance cover is that anyone aged 30 and above will have an increasing 2% cost on their PHI premiums every year until they take out PHI
