Health Insurance for 457 Visa Holders
Health Insurance for 457 Visa Holders in Australia
Introduction
Sponsored employees on 457 visas working in Australia may not be eligible for Medicare, the Australian Governments 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 totally liable for all medical and hospital expenses, other than costs that 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 coverage.
Exfin can provide access to health policies that provide comprehensive cover for employers and employees and, most importantly, advice from experienced brokers regarding the best quality policies available in your particular circumstances. The tables below provide an indication of the premiums currently applying to a range of comprehensive policies. Please refer to the brochure available here for specific details regarding the cover provided under the policy.
Should you wish to purchase this cover, or to seek more information about whether other policies might better suit your situation, please complete the Inquiry form at the bottom of the page and you will be contacted shortly by a suitably qualified and licensed broker who will discuss your requirements.
Indicative Premiums : 457 Visa Health Coverage
Which Cover Suits You? |
Table W |
Table D |
Table W2 |
Combined Table W&D |
In-patient hospital and Out-patient Medical cover
The highest Cover available, unlimited medical and hospital expenses including maternity cover pregnancy, ambulance expenses, extras and Medical Repatriation to Home Country.
Medical expenses as an In-Patient (In hospital) provided by doctors while in hospital, such as surgeons, anaesthetists, pathologists or radiologists, are reimbursed up to 100% of the Australian Medical Association Scheduled fee.
Waiting time for Pregnancy related expenses 12 months.
Medical Repatriation to Home Country - 100%
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Public In-patient hospital cover only
The highest cover available for Public In-Hospital Cover.
In Patient (In hospital) Expenses for all medical services provided by doctors while in hospital, such as surgeons, anaesthetists, pathologists or radiologists, up to 100% of the Australian Medical Association (AMA) Scheduled fee.
Maternity benefits are excluded.
Medical Repatriation to Home Country - 100%
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Executive Extras –dental, optical, physiotherapy etc.
This table can be combined with table “W” at a premium discount of $161.20.
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Cover which includes Medical Repatriation to Home Country.
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Suitable Cover for Reciprocal Health Care Agreement (RHCA) Medicare Card Holders.
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Single Premiums per Annum |
$1,822.20 |
$664.80 |
$784.80 |
$2,312.40 |
Couple/Family Premiums per Annum |
$3,644.40 |
$1,329.60 |
$1,569.60 |
$4,624.80 |
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 coverDental 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
Taxation Liabilities – Medicare Levy and Medicare Levy Surcharge (MLS)
As indicated, visa holders from RHCA countries are liable for the payment of the Medicare Levy, and also the MLS if their income exceeds proscribed levels. An indication of the MLS payable at different income levels, unless you have complying health coverage, is provided in the table below.
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Single |
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Couple/Family |
Income |
Tax payable |
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Income |
Tax payable |
$49,999 |
$0 |
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$99,999 |
$0 |
$50,000 |
$500 |
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$100,000 |
$1,000 |
$60,000 |
$600 |
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$110,000 |
$1,100 |
$70,000 |
$700 |
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$120,000 |
$1,200 |
$80,000 |
$800 |
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$130,000 |
$1,300 |
$90,000 |
$900 |
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$140,000 |
$1,400 |
$125,000 |
$1,250 |
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$150,000 |
$1,500 |
$150,000 |
$1,500 |
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$200,000 |
$2,000 |
$200,000 |
$2,000 |
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$250,000 |
$2,500 |
$250,000 |
$2,500 |
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$300,000 |
$3,000 |
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.
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.
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Created by PiXEL iNK MEDiA