Health Insurance Options for Expats and Foreigners in Australia
Australia is one of the most popular expat destinations in the world. It boasts an exceptionally high standard of living, thanks to its low population density, long life expectancy, high literacy and educational standards, and excellent public healthcare.
In fact, according to the Human Development Index (HDI), Australia ranks 7th globally in quality of life. No wonder expatriates love it! And as they settle in, they will find that Australia’s public healthcare has a lot of benefits for them. This is what they need to know about public and private health insurance in Australia.
Find the Best International Medical Insurance
- Compare multiple quotes from top insurers
- Get expert advice at no additional cost
- Find the right plan for your needs and budget
Overview of Australia’s Public Healthcare System
Australia has a universal public healthcare system known as Medicare. It is delivered through a combination of private and public services.
On the public side are public hospitals, community services, public health initiatives, and government-based organizations.
The private system comprises private hospitals and clinics, pharmacies, and doctors in private practice who provide care to the public and bill the government directly for their services.
The federal government funds public healthcare through taxes levied on salaries. Most taxpayers contribute 2% of their income to pay for Medicare. Those who earn little to no income have this contribution waived.
Private Health Insurance in Australia
Approximately 50% of Australians have private health insurance. And this number is growing. The Australian government is actively encouraging high-earning individuals to take out private insurance policies to supplement their public coverage.
This is part of a program designed to alleviate pressure on public facilities and reduce wait times. In fact, high earners face an extra tax unless they carry private insurance.
Given that private health insurance coverage is usually more economical for younger people, it makes sense to acquire it early on, even before you hit the salary threshold.
Pros and Cons of Using the Public Health System
Australia has an excellent public healthcare system. However, the system is not perfect. There are waiting lists for specialist appointments and elective treatments.
Additionally, travel is often necessary to access specialist care in rural areas. Thus, most expats in Australia opt for private health insurance to supplement their coverage under the public Medicare program.
As an added benefit, private healthcare means being treated in facilities that are more comfortable and private, with shorter waits and a greater choice of physicians.
However, as many expats will attest, private healthcare facilities do not provide emergency services. In many rural and remote regions, emergency services play a more significant role in providing healthcare.
Therefore, even if an expat prefers the level of care and comfort offered through private insurance, it is still worthwhile to apply for public coverage through Medicare. You never know when you will need help, such as emergency services, and it is best to be covered when you do.
Accessing Australia’s Public Healthcare System
Medicare is available to all Australian citizens and permanent residents. Therefore, all expats who qualify as permanent residents are eligible for coverage.
However, this does not mean that all visitors to Australia are eligible for Medicare. In particular, all expats moving to Australia with a working visa (and not permanent residency) are not eligible.
In fact, they must prove that they have adequate private health insurance; otherwise, they will not receive their visa.
Furthermore, all tourists and other short-term visitors to Australia should carry their own private travel medical insurance coverage.
What You Need To Know About Applying for Medicare
Generally, signing up for Australian Medicare is straightforward. Permanent residents can use the official Medicare site to check their eligibility and begin the application process.
The website is well laid out and clearly outlines the documents you need to have and the steps you can expect.
When you have all your supporting documentation, you head to a government service center. Assuming everything is in order, you will receive a Medicare number right away, and a physical card will arrive in the mail within a few weeks.
It is worth noting that Australia holds reciprocal healthcare agreements with several countries. If you are a citizen of one of these countries, you may access Medicare through an alternative path.
Thankfully, it is usually quick and easy. The Australian government has a website that outlines all that you need to know.
Benefits of a Private Global Medical Insurance Plan
In Australia’s rural regions, healthcare services are occasionally covered by volunteers and charitable organizations.
Additionally, services, including mental health care, may be limited due to a lack of resources. Holding a Global Medical Insurance Plan offers support and resources no matter where you are in the country.
It also ensures you have access to the best facilities, whether private or public, to maximize your treatment options.
Best Health Insurance in Australia for Expats
We recommend the Cigna Global Medical Insurance plan for most expats or international citizens living in Australia. It is our most popular plan, offering global coverage, affordable pricing options, and world-class service.
Cigna Global Insurance Plan
- Flexible plans tailored to your needs and budget
- 1.5M+ providers in 200+ countries
- 24/7 multilingual customer support
Best Health Insurance Plan for US Citizens in Australia
For U.S. citizens living in Australia, we recommend the BCBS Global Solutions Worldwide Premier plan for several reasons. You can secure access to a premium international network of hospitals outside of the USA, and when you are in the USA, you will have access to the Blue Cross Blue Shield network of hospitals.
BCBS Global Solutions Worldwide Premier
- Unlimited annual and lifetime coverage
- Pre-existing conditions covered with prior insurance
- For U.S. citizens abroad or foreign nationals in the U.S.
Clinics and Hospitals in Australia
As in most countries, you will be expected to pay for your doctor’s visit and any medical expenses incurred during your stay at the time of consultation.
If your health insurance company does not make direct payments to the medical service provider for medical expenses, obtain an itemized receipt and the hospital’s contact information to submit for reimbursement.
You can search for doctors under “Medical Practitioners” in the Yellow Pages, and most large towns and cities have 24-hour clinics.
If you need emergency assistance from an ambulance, the police, or the fire department, dial 000 from any private or public phone for free. For non-urgent crimes, call 133 444 to reach the police’s non-emergency line.
Top Ten Hospitals in Australia
- Royal Children’s Hospital
- Department of Health & Human Services of Tasmania, Royal Hobart Hospital
- Royal Adelaide Hospital
- Children’s Hospital at Westmead
- Baker Heart Research Institute
- St John of God Health Care
- Cancer Institute NSW
- King Edward Memorial Hospital for Women
- Austin Health
- Hunter New England Health
How Routine Doctor Visits Work in Australia
The family physician plays a central role in Australia’s healthcare system. You should consult a family physician for referrals to specialist care.
Additionally, family physicians address all non-urgent concerns. Unlike some countries, in Australia, you do not turn up at the hospital’s emergency department unless it is truly an emergency or you are unsure where else to go.
Nearly all family physicians operate on an appointment basis, though some may reserve walk-in spots for patients needing prescription refills and other routine requests.
Arranging a doctor’s appointment in a rural area may take a week or more due to a shortage of physicians in the more remote areas of the country.
Through Medicare, approximately 75% of all doctors’ visit costs are covered by the government. That number rises to nearly 100% for hospital visits, as Medicare pays inpatient costs.
How to Find a Family Physician in Australia
You can always search for a family physician by asking friends, family, colleagues, and neighbors for recommendations.
However, you can also use a government service to aid with your search. Health Direct has a GP search tool (which you can also use to find specialists, dentists, and even pharmacies).
When you are connecting with a physician’s office, be sure to ask if they “bulk bill” or not. “Bulk billing” refers to a situation in which a doctor bills Medicare directly.
This is highly desirable, as it means patients do not need to pay for each visit and then apply for reimbursement.
Find the Best International Medical Insurance
- Compare multiple quotes from top insurers
- Get expert advice at no additional cost
- Find the right plan for your needs and budget
Joe Cronin, President of ICI, is a leading expert in international health, life, and travel insurance. An MBA and founder of multiple global businesses, he helps expatriates and travelers access trusted, comprehensive insurance solutions worldwide.
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