Important Disclosure

Our mission at ComparingExpert is to provide our users with free information and tools that empowers you to make decisions with confidence. We may be paid when readers visit links, purchase products or services from partners listed on this site.

You do not pay any extra for using our service.

While compensation arrangements may affect the order, position or placement of product information, it doesn’t influence our assessment of those products.

Please don’t interpret the order in which products appear on our site as any endorsement or recommendation from us. www.comparingexpert.com.au compares a select range of products, providers and services, but we don’t provide comparisons or information on all available products, providers or services. There may be other options available to you than the products, providers or services covered by our service.

Table Of Contents
    Types of Health insurance

    Top 6 Health Insurance Myths Debunked

    Top 6 Health Insurance Myths
    Georgia Carter Fact Checked Updated: 30 November 2023
    Share
    We may be paid when readers visit links, purchase products or services from partners.

    There remains a sea of confusion and misunderstanding regarding private health insurance. Many believe private health insurance is too expensive or complicated to purchase. Private health insurance can provide peace of mind, knowing you will be covered should you ever need it. If you get sick or have an accident, having private health insurance can reduce the burden on your family.

    Today, we are dispelling some of the most common health insurance myths and misconceptions consumers have so they are more informed and confident in making decisions about their cover.

    Key facts

    • Health insurance policies, like Hospital cover, are accessible and affordable for all since various levels of coverage are available. 
    • Medicare covers a range of healthcare services but does not offer coverage for extensive treatments. 
    • Private health insurance cover will pay the costs of most treatments and services but does not cut out-of-pocket costs entirely. 
    • Finding the health insurance policy that best suits your needs is easy with the help of companies like ComparingExperts. 

    What is private health insurance?

    Private health insurance is a type of coverage offered by a private entity instead of a state or federal government. Private health insurance can be provided by an employer, a union, an insurance company, or a religious organisation. Private health insurance plans vary widely in terms of the benefits they cover and the premiums they charge. 

    Some insurance plans provide comprehensive coverage, while others only provide basic coverage. Some plans are open to all comers, while others are restricted to members of a particular group. In general, private health insurance plans tend to be more expensive than public health insurance plans. However, they may provide better coverage and flexibility than public plans.

    Below are the most common health insurance myths debunked. 

    Top 6 Health Insurance Myths Debunked

    Myth 1: You don’t need health cover if you’re young and healthy

    Even if you’re the picture of health, that doesn’t mean you’re immune to getting hurt. Injuries, accidents, and medical emergencies can happen to anyone at any time. If you don’t have private health insurance cover, the cost of treatment can quickly become overwhelming. Private health insurance protects you financially in case of an unexpected health issue. Whether it’s a broken bone, a sudden illness, or a serious injury, you’ll be covered for the cost of treatment. That way, you can focus on getting better, not on how you’re going to pay your medical bills. Having health insurance policies gives you peace of mind knowing that you’re protected financially if something happens to your health.

    When most people think about private health insurance, they tend to focus on the hospital cover aspect. However, there are several different types of cover that you can take out, and each one offers its own set of benefits. For example, health insurance companies can give you access to non-hospital treatments such as dental, optical, physio, chiro and remedial massage. 

    Myth 2: You need a lot of money to afford private health insurance

    No one likes to think about the costs associated with illness or injury, but the reality is that medical care can be very expensive. If you don’t have private health insurance or the right insurance for your needs, you could face a significant financial burden. An unexpected health incident can occur even if you are healthy, leaving you with sizable out-of-pocket expenses.

    There are a number of health funds to choose from in Australia, and each one offers a range of cover options. For example, some health funds offer budget-friendly basic cover, while others provide more comprehensive cover.

    Myth 3: Medicare is the same as private health insurance

    The government provides free or low-cost medical care through the Medicare system in Australia. However, Medicare does not cover all medical expenses. For example, it does not cover private hospital rooms or some types of specialist care. Private health insurance helps to fill this gap by providing coverage for private hospitals and clinics. In addition, private health insurance gives policyholders a greater choice over their healthcare experience. For example, they can choose their own doctor or hospital and make appointments at times that are convenient for them. As a result, private health insurance is an important way to maintain access to quality healthcare in Australia.

    Private Health Insurance is not a requirement, but there are penalties for not having it. The Medicare Levy Surcharge is a tax imposed on those without private health insurance who earn above a certain income. The Lifetime Health Cover loading is an additional premium added to the cost of private health insurance if it is not purchased by a certain age. Both of these penalties can be significant, so it’s important to weigh the costs and benefits of private health insurance before making a decision. 

    Myth 4: Private health cover cuts all out-of-pocket costs

    Even if you have health insurance, there are still some health-related expenses that won’t be covered. This can come as a surprise to many people who think that their health insurance will cover everything. In reality, there are several things that your health insurance company won’t pay for.

    This includes admission to hospital, which could range from $200 to $1000, depending on your policy and number of dependents, and the remaining cost for healthcare services once you’ve reached your annual benefit limits, the total expense of any medical service if it is excluded from your policy, and any medical service that Medicare does not cover because many health funds follow the Medicare guidelines.

    Myth 5: Health insurance is the solution to all of your health problems

    Health insurance is an important way to help cover the cost of medical care, but it’s important to remember that it doesn’t cover everything. Most policies have limits on how much they’ll pay for hospital stays and extras like physiotherapy and dental care. This means that you could end up with some out-of-pocket expenses.

    Health insurance certainly will not solve all of your health-related issues. While it may help cover some treatments and services, you will still have to put in the work and apply any lifestyle changes required to help you get healthy.

    Myth 6: It’s too difficult to find the right policy

    Finding a policy seems complicated. There are a lot of factors to consider when choosing a health insurance policy. You want to ensure you’re covered for the things you need, but you also don’t want to overspend on premiums. But it’s much easier than you think.

    At ComparingExperts, we provide quotes from some of Australia’s top health funds. We’ll help you find the right policy for your needs and ensure you get the best possible price. Simply fill out the form below, and we’ll take care of the rest. So why wait? Get started today and see how much you could save.

    Private health cover

    7 reasons to apply for health insurance

    There are many noteworthy benefits of taking out a health insurance policy.

    • You have the option to choose your own surgeon or doctor.
    • You’ll gain access to private hospitals and treatment centres.
    • You won’t have to pay the Medicare Levy Surcharge.
    • You will avoid paying the Lifetime Health Cover Loading fee
    • You won’t have to serve long waiting periods
    • With an Extras policy, you can reduce out-of-pocket costs for services such as dental or optical care.
    • You and your family will be covered in emergencies.
    health insurance myths

    Frequently asked questions and answers

    • What are the 2 biggest reasons to get health insurance?

      One of the main reasons people take out private health insurance is to protect themselves and their families from the hefty costs of healthcare services. If there is an emergency or serious illness within the family, they can rest assured knowing that the bills will be paid for any in-hospital treatments required. The second largest reason to take out a private health insurance policy is the choice of your own doctor, surgeon, and hospital, as well as access to a private hospital and room, which renders a higher quality of service.
    • Is it worth taking private health insurance?

      It can be difficult to decide whether or not to take out private health insurance. If you’re young and mostly healthy, you might not feel like you need it. And if you’re happy with the public health system, it might not make sense to pay for something you’re not using. But there are some good reasons to consider private health cover, especially if you’re older or have chronic health problems. First of all, it can give you peace of mind. Knowing that you have insurance can be a huge relief, especially if you have a family. Second, it can save you money in the long run.
    • What age is best for health insurance?

      Any age is a good age, but there are specific situations where taking out private health insurance is truly worth it and highly recommended. These times include if you’re planning on getting pregnant, if you have a chronic illness, if you’re becoming a senior, if you want to have the freedom to choose your own doctor, and if you want to avoid paying the government taxes, such as the Lifetime Health Care Loading Fee.
    • What happens if you get health insurance after 30?

      If you don’t take out your own policy before you’re 31, you’ll be charged a Lifetime Health Cover (LHC) loading. This is an additional 2% charge on your premiums for every year you’re over 30. So, if you wait 10 years to take out a policy, you’ll be paying 20% more than someone who took out a policy at 30. The LHC loading is designed to encourage people to take out private health insurance early and keep it throughout their lives. It’s important to remember that the LHC loading is in addition to the premium itself.
    • Is hospital cover worth getting?

      In recent years, health care costs have been rising, leaving many people struggling to pay for their medical expenses. While Medicare provides some coverage for seniors, it does not cover everything, and the wait times for non-urgent procedures can be very long. Private health insurance can help fill in the gaps, but the out-of-pocket costs can deter many people. In addition, private health insurance plans often have much higher deductibles than Medicare, making them unaffordable for some people.
    • What happens if you don’t have health insurance and you go to the hospital?

      One of the main reasons to have health insurance is to avoid shouldering the entire cost of your medical care. If you don’t have health insurance, you will be billed for all medical services, including doctor fees, hospital and medical costs, and specialists’ payments. The bills can increase exponentially without an insurer absorbing some or even most of those costs. This is why health insurance is so important: to protect yourself financially in case of an accident or illness. Of course, health insurance doesn’t mean you’ll never have to pay anything out of pocket for your medical care. You may still be responsible for some costs, such as deductibles, copayments, and coinsurance. But having health insurance will help you keep those costs under control.

    Other topics

    Thanks for reaching out!

    We will review your comment and get back to you as soon as possible. If your inquiry is urgent, please use the phone number listed at the top of this page.

    Talk to you soon.

    Have a question? Ask a specialist.

    Did you know we also compare Life Insurance?

    Get life insurance quotes online in under 60 seconds. Compare the features and benefits from some of the largest life insurance companies in Australia.

    • Protect Your Loved Ones
    • Save Time & Money
    • Support at Every Stage
    To receive great value when comparing premiums and policy features from select insurance brands, please provide us with a few details about yourself in the quote form below.
    Please select your level of cover
    Please select your age
    Please select your gender
    Please select your smoking status
    Please select your state

    Almost done...

    We just need a few more details about you, so that we can help you find the right cover for your requirements.
    Please enter your full name, ie. John Smith
    Please enter a valid email
    Please enter a valid mobile number

    By clicking ‘Compare & Save Now’, you are accepting our Terms of Use, Privacy Policy and consenting to us contacting you about the products and services provided. Please consider the PDS before purchasing any products.

    Call 1300 743 254

    Thank you!

    We’ll be in touch soon to ensure that we have all the information needed to create a quote specific to your unique requirements.