Australia Health Insurance

Since 1984, Australia has based its health care system on an insurance scheme called Medicare. This universal health cover is available exclusively to Australian citizens, but also to foreigners with permanent resident status. This universal health insurance scheme offers citizens and permanent residents free access to outpatient and inpatient care. It also provides free or low-subsidized access to dental care, optometry and psychology services. This universal coverage may apply reductions in certain cases, notably for treatments carried out by specialists such as physiotherapists, dieticians or speech therapists.

The government finances Medicare through income taxes, which apply to Australian employees whose income exceeds a certain threshold (2% of salary).
The benefits covered by Medicare are :

• Consultations with a general practitioner or specialist;
• Hospitalizations ;
• Treatment prescribed by a doctor (tests, examinations, surgery, etc.);
• Eye tests performed by optometrists.

Medicare reimburses other treatments only under certain conditions.
Some countries, such as Belgium, Switzerland, Italy and the UK, have signed bilateral agreements with Australia. As a result, expatriates from these countries can benefit in part from Medicare directly. However, Medicare offers less attractive coverage than that enjoyed by Australian citizens or permanent residents: only essential care will be covered by Medicare.

Why take out private international insurance to travel to Australia?

• To subscribe to Medicare as an expatriate, you need to obtain permanent resident status. While you’re waiting to obtain permanent resident status, we strongly recommend that you take out health insurance to cover you during the period when you won’t yet have access to Medicare.
• We also strongly advise you to take out complementary insurance to Medicare. This will provide insufficient coverage for non-essential care, such as paramedical care. Medicare reimbursement rates are attractive for standard GP consultations and emergency hospitalization.

How do I obtain permanent resident status in Australia?

To apply for universal medical coverage through Medicare, you’ll need to obtain permanent resident status. However, obtaining this status is not easy. In fact, only certain visas will allow you to qualify for permanent resident status:

• Obtaining a work visa to qualify for permanent residency (not all visas grant permanent residency). Obtaining a work visa enabling you to qualify for permanent resident status is quite complex in Australia. For example, for the Employer Nomination Scheme 186 visa, your Australian employer will have to sponsor you. The fees are quite high, and the authorities take around 20 months to process applications. So, if you don’t yet have an employer, your visa application could take up to 36 months to process.
• Practice “reunification” for a couple, one of whom is a permanent resident, or if your parent or son is an Australian citizen, for example.
• Become a permanent resident for your retirement: in fact, the government has provided a pathway for foreign retirees to join Medicare on a criteria basis that defines their eligibility.