Australia Health Insurance

Since 1984, Australia’s healthcare system has been based on a health insurance scheme called Medicare. This is universal health coverage reserved exclusively for Australian citizens and 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 for treatments carried out by specialists such as physiotherapists, dieticians or speech therapists. Medicare is financed by income taxes applied to Australian employees whose income exceeds a certain threshold (up to 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.

Other treatments are only reimbursed by Medicare under certain conditions.
Some countries, such as Belgium, Switzerland, Italy and the UK, have signed bilateral agreements with Australia. In this way, expatriates from these countries can benefit in part from Medicare directly. However, the coverage offered is less attractive than that enjoyed by Australian citizens or permanent residents: only essential care is covered by Medicare.

Why take out private international insurance for expatriation 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, it’s highly recommended that you take out international health insurance to cover you for the period when you won’t yet have access to Medicare.
• In any case, it is strongly recommended to take out complementary insurance to Medicare, which only partially covers 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. Obtaining this status is no easy matter, as only certain visas will allow you to qualify for permanent resident status:

• Or obtain a work visa to qualify for permanent resident status (not all visas grant permanent resident status). 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, you will need to be sponsored by your Australian employer. There are fairly high fees and applications can take up to 20 months to process. If you don’t yet have an employer, the visa application can be processed over 36 months ;
• Either practice “reunification” for a couple one of whom is a permanent resident, or if your parent or son is an Australian citizen;
• Or become a permanent resident for your retirement: the government has provided a pathway for foreign retirees to join Medicare on a criteria basis that defines their eligibility.