Health Insurance for 457 Visa Holders in Australia

Sponsored employees on 457 visas working in Australia may not be eligible for Medicare, the Australian Government's public health care program which provides benefits towards the cost of medical treatment and free public hospital treatment for most Australians. In Australia, the sponsors of 457 visa holders are entirely liable for all medical and hospital expenses, other than costs which are met by health insurance, incurred in Australia by sponsored employees and their dependents.  This is by virtue of their sponsorship Agreement with the Department of Immigration and Multicultural Affairs (DIMA).

This responsibility commences upon the employee’s arrival in Australia and explains why many employers either provide health insurance as part of the employment package or require the employee to take out health insurance as part of their employment contract.  By doing the latter the employer cannot transfer ultimate responsibility in the event that uninsured costs are incurred, so it represents a higher risk approach.  Ultimately, it is in both the employers and visa holders interest to ensure there is appropriate insurance coverage.

Exfin can provide access to health insurance policies that ensure comprehensive cover for employees and employers and, most importantly, advice from experinced brokers. The table below provides a very summarised view of the range of cover available, and the applicable premiums - with insurance provided by one of the world's largest health insurers. In many instances, if an individual has existing private cover overseas, then it will be possible to provide 'continuity of cover', with the result is that no waiting times might apply for coverage of pre-existing conditions.

Indicative Premiums & Cover : 457 Visa Health Coverage

Should you wish to purchase this cover, or to seek more information about whether other policies might better suit your situation, please complete an Inquiry Form and you will be contacted shortly by a suitably qualified and licensed broker who will discuss your requirements.

Medicare Coverage 

Sponsored Employees, directly recruited from a country with which Australia has a Reciprocal Health Care Agreement (RHCA), may be eligible for limited Medicare benefits, though only for “immediately necessary treatment”.  For taxation purposes, these visa holders are treated in the same manner as Australian citizens and are subject to the same tax payments (Medicare Levy) and penalties (MLS) as Australian citizens. RHCA Agreements are currently in place with the following countries:

• United Kingdom
• New Zealand
• Sweden
• Finland
• Netherlands
• Malta
• Italy
• Norway
• Ireland (Hospital only)

Treatment under the RHCA is limited, as indicated above, to immediately necessary treatment which occurred after arrival in Australia (ie. pre-existing conditions are not covered), and includes the following:

• subsidised out-of-hospital medical treatment (visiting a doctor) under Medicare
• subsidised medicines under the Pharmaceutical Benefits Scheme which arose after arrival in Australia, and
• treatment in a public hospital. 

Examples of the sort of costs which the RHCA’s do NOT cover include:

• Treatment as a private patient (patients opting to be treated as private patients will forego Medicare benefits)
• Ambulance cover
• Dental Care
• Spectacles and hearing aids
• Surgical supplies
• Prostheses (excluding artificial limbs and surgically implanted prostheses);
• Medical evacuation to home country
• Funerals
• Elective treatment
• Treatment that has been pre-arranged before arrival in Australia

Sponsored employees from non RHCA countries are able to request a refund for the Medicare Levy in arrears by applying to the Minister. Note that, for Lifetime Health Cover purposes, eligibility for Medicare does not include people who have limited eligibility under the RHCA. This means that the grace period for migrants who have limited eligibility under a RHCA does not start until they are granted full eligibility for Medicare – which starts when they apply for Permanent Residency.

Life and Travel Insurance cover for Temporary Visa Holders

Finally, please note that Life Insurance cover for 457 visa holders is now available from major Insurers to a maximum of AUD2M, with TPD and income and Income Protection cover also available.  Travel insurance for 457 and other visa holders has also been a problem in the past with many companies requiring Australian citizenship or permanent residency, but it is now possible to arrange coverage online for most visa holders - see our page on travel insurance for 457 visa holders.

Disclaimer : The information provided above is not intended to be specific or to be relied upon. Anyone considering their exposure, or intending to purchase health insurance, is advised to consult appropriate professionals before taking any action or indeed deciding to take no action to limit or reduce exposure.