Private Health Insurance (AOS_2) Flashcards
1
Q
Private health insurance definition
A
is a type of insurances where members pay a small fee monthly called a premium to cover the costs of health-related services not covered by Medicare
2
Q
PHI funding
A
- dependent on people’s monthly premiums, which they can choose based on the level of cover they want
- customers may have a waiting period before they can access services apart of their plan, but they still play their premium
3
Q
PHI incentives
A
- Medicare Levy Surcharge: those who earn above a certain threshold are required to pay a 1-1.5% surcharge for Medicare if they do not take out private health insurance
- Private healthy insurance rebate: the govt. incentives people to take out PHI through providing them a partial rebate for their premiums
- Lifetime health cover: when talking out PHI, those who take it out after the 1st of July after their 31st birthday pay an extra 2% on their premium for every year they are over 30 when they take out the policy
4
Q
PHI advantages
A
- has different levels of cover and different companies depending on people’s needs and wants
- covers services not covered by Medicare
- alleviates pressure from the public health system
5
Q
PHI disadvantages
A
- can be costly for individuals or families to take out this level of cover
- sometimes people pay for services they don’t use
- there can still be out-of-pocket costs for some services and policies
6
Q
PHI sustainability
A
- has a ‘pay-as-you-go’ sort of system depending on people’s premiums, meaning people pay for the services they receive
- elements of plans are not covered straight away
- alleviates pressure from public system
7
Q
PHI access
A
- PHI rebate makes it more financially accessible
- people can choose their own doctors in public and private hospitals
- more access to s wider range of services e.g. allied health
8
Q
PHI equity
A
- different premium plans and companies available depending on people’s choice
