Hi,

I am on a 457 visa from the UK so have the reciprical medicare card. As part of my employment contract I have to get private health insurance by 30 June.

I have checked and most Health Insurers will only provide Overseas Visitors Insurance which a) is very expensive -approx 2k and
b) does not exempt you from the additional Medicare Levy Surcharge of 1% on my salary so I would have to take out another 'local' hospital cover policy on top.

Is there any way around this to avoid the MLS?

It seems I am not entitled to full medicare benefits but still have to pay the premium for not having private health insurance, as the Insurers will only give me an overseas visitor policy which will not exempt me??? Am I missing something???

Any advice would be great!

Thanks

Are you aware that the Medicare Levy Surcharge threshold changes as of 1 July 2008 ?? You don't say if you are single or a couple, nor approx how much you earn. The threshold for a single person increases from $50k to $100K and for a couple (combined income) increases from $100k to $150k. Does this change things ??

Do you really have to get private medical insurance ?? I think you will find that the Reciprocal Medicare card will cover you for most things that are essential - even covered us for the birth of our child - we didn't pay a cent ! Health insurance as you probably are aware doesn't pay for everything - there are still out of pocket expenses. I would think that you could probably waive the rights to have insurance and absolve your employer from having to pay for your healthcare - after all by making you take it and pay for insurance they are doing exactly that ! If they agree just save some of the money you would spend on insurance for when/if you need to pay for medical treatment - which of course might never happen.

So no you cannot avoid the MLS and no you aren't missing something ! Sorry !

Thanks Colin.

Yep, unfortuantely it still applies as I earn above 100k.

There is no way of getting out of having the private health insurance from the employer as I assume it still is their ultimate responsibility per the sponsorship rules if something did happen to me.

I am thinking I have to just grin and bear it and take the hit.

The cheapest I have seen for the most basic of cover is $750 with IMAN. This will not exempt me from the MLS so I will have to decide if I want to also get a local basic hospital cover (which pretty much covers nothing!) to exempt me from the tax liability, although there is little difference between the cost of the policy and the tax saving.

They don't make it easy now do they....?

I think I would prefer not to be entitled to the Reciprocal medicare card, this way I could claim back the 1.5% Mdeicare Levy, be exempt from the 1% MLS and use the 2.5% of my salary to cover any medical costs as they occurred....

Sure, as I said, I'll just grin and bear it, buy the cover and have some peace of mind that if something serious happened they would repatriate me.

Thanks for your help though.

Under 457 rules all sponsors are required to make 'provision' for the medical care of those they sponsor. My sponsors got round this by telling me that I had to get insurance - so I chose not to bother - there wasn't an issue. By telling you to get insurance they are fulfilling their requirement I believe - if you chose not to get it then that is your problem !

The other thing you have to consider is would it be cheaper to pay the MLS ? $750 seems really cheap to me. I know a basic family cover (for Oz citizens) would cost around $150 per month - so $750 a year for a single guy on a $100k + salary seems like a drop in the ocean.