Every year, just around March and April, millions of citizens around Australia receive notifications on the potential rise in premiums on their private insurance cover. Over the years the premiums have risen by just under 4 percent and vary based on the product and the insurer. Compared to other years the rise is quite small. However, this is much higher than the average wage growth pitting consumers in a position of skepticism over its full adoption.
Why Consider Private Insurance?
Australia is one of the few countries worldwide with a fully functional healthcare system known as, Medicare. The healthcare is available to the mass public and is funded through a two percent wage tax known as the Medicare levy. This gives the users unfettered access to public hospitals and receives attention from general practitioners.
The Commonwealth government, however, champions for the adoption of private insurance. There are penalties given for those who do not take it out of their income tax. For those who do it right, they will receive rebates on their premiums.
An investigation into out of pocket expenses accumulated from health care expense will give you insights into why you need such coverage. Just under 4 percent of Australian residents have signed up for private insurance cover. This is a 30 percent increase since 1999. General different people give different reasons for taking in private health insurance. There are those who try to avoid the waiting lines required for those anticipating elective surgery. Private insurance gives them the freedom to choose their doctor and hospital. They even have the option of their private room where the will receive good food and attractive facilities. There is a general perception that you get the best provided you are willing to pay for it. This is what we see in health insurance. , Many fear they will not receive the right services if they go through the public system.
Shorter Waiting Times
The entire argument behind a universal healthcare system is to provide clinical care to those who need it the most. As a result, the bulk of emergency treatment is available in public hospitals. The case is, much different when it comes to elective surgery procedures. In such situations, patients are encouraged to opt for private health insurance instead.
The waiting times for elective surgery vary depending on whether the patients are privately or publicly funded. As of 2015, the average waiting time was 42 days for public patients. Those with private health cover wait for roughly 20 days. Those who self-fund their entire treatment will only drag on for 16 days. The waiting times will vary depending on the patient’s urgency for clinical treatment. It also varies based on the procedure that will be undertaken. For instance, public patients awaiting heart surgery while a patent awaiting knee surgery can drag on for 2013 days.
Customer Choice
A major factor behind the adoption of private health insurance is the choice of provider. The idea that patients should have a choice with their healthcare is heavily promoted by government and consumer groups.