Applying for Medicare

The Australian Government provides the Medicare health and payment programs for Australians and permanent residents (not international students). It generally takes 10 days for DIMIA's records pertaining to your entry into Australia to be available to Medicare. Following that, you should apply at a Medicare office for a Medicare card. In order to prove your eligibility for Medicare, you will need

• your passport with a valid visa
• two documents proving residency (e.g. utilities bills, rental contract, bank card)

The application, and a complete list of acceptable documents can be found on the Medicare website (PDF). It usually takes banks and utility providers a few weeks to get their own documents out to you. When opening a bank account, try getting a statement (and card) directly from the branch and taking that with you.

If you should need to use medical services prior to your Medicare card being issued, just keep the bills and submit them for re-compensation once you get your card. It is also interesting to note that when I applied for my Medicare card I found the first service representative intentionally obtuse (I think I only had a bank statement and an informal rental statement since I was sub-letting/sharing the apartment), so I wandered a few blocksdown to the next CBD Medicare office and was happily processed by the representative there.

Using your Medicare Card

• For medical services that are not emergencies, visit a GP (general practitioner doctor) or a medical centre (usually with a bank of doctors). Those that offer 'bulk billing' will bill Medicare directly and you don't have to pay out of pocket.
• If in need of emergency medical services, the casualty or emergency department of your local public hospital will provide 24 hour service (expect lengthy wait times).
• If you need to see a specialist, you will first need to get a referral from your GP.

n.b. Medicare does not pay towards ambulance costs, dental services, physiotherapy, spectacles, podiatry, chiropractic services, or private hospital accommodation.

Private Insurance and Medicare Levy Surcharge

The Australian Government uses financial incentives to encourage purchase of private health insurance. There is a Commonwealth Government 30% rebate on private health insurance premiums. Also, you are liable for additional taxation (Medical Levy Surcharge, MLS) if any of the following apply (copied from the ATO website):

• you and your dependants (including your spouse) are not in any of the six Medicare levy exemption categories
• you do not have private patient hospital cover for yourself, your spouse and all your dependent children, and
• you meet the conditions for your relevant circumstances as described below:
  • you are single and have no dependants, and your taxable income for surcharge purposes is more than $50,000
  • you are single with dependent children, and your taxable income for surcharge purposes is more than $100,000, plus $1,500 for each dependent child after the first child
  • you have a spouse and dependent children, and the combined taxable income of you and your spouse for surcharge purposes is more than $100,000, plus $1,500 for each dependent child after the first child, or
  • you have a spouse but no dependent children, and your combined taxable income for surcharge purposes is more than $100,000.

If you and your spouses combined taxable income for MLS purposes exceeded the family surcharge threshold described above, but your own taxable income for MLS purposes did not exceed $16,284, you are not liable for the surcharge for any part of the year. However, your spouse may still be liable for the surcharge.

If you take out private patient hospital cover during the year, or cancel your cover, you may be liable for the surcharge for the part of the year when you and all your dependants (including your spouse) were not covered.

There are a number of private health/medical insurance providers. Read up (abc.net.au, phiac.gov.au) on them, compare, and evaluate what is best for your needs.

Lifetime Health Cover

The cost of your privae health insurance is dependent on your age when firs taking out hospital cover. From the DIMA website:

People who take out hospital cover by 1 July following their 31st birthday and maintain their membership will pay lower amounts throughout their lifetime, compared to people who take out hospital cover when they are older. If you delay taking out hospital cover, you will pay an extra 2% loading for each year you delay joining after the age of 30, up to a maximum loading of 70% that will apply to someone who first takes out hospital cover at age 65.