Australia's public healthcare system

The Australian healthcare system is made up of a mixture of services funded by the Australian Government and private health insurance. Australian residents are automatically covered for many hospital and medical costs under the Government’s Medicare scheme. However, many choose to take out additional cover for medical expenses through Australian private health insurance.

Medicare is the public Australian healthcare system that provides residents (and some overseas visitors who have Reciprocal Benefits) with free or subsidised health services. You can check your eligibility on the Services Australia website). Medicare will cover the costs for part or all of the following services:

seeing a GP or specialist
tests and scans, like x-rays
most surgery and procedures performed by doctors
eye test by optometrists.

Medicare won't pay for medical services like:

ambulance services
most dental services
glasses, contact lenses and hearing aids
cosmetic surgery.

How does Medicare relate to OSHC and OVHC?

International students and visitors who may not be covered under the public Australian healthcare system can purchase Australian private health insurance for the duration of their stay. This may be a requirement of your visa, so make sure you carefully check your visa details to find out which type of Australian private health insurance you need.

International student health insurance is also known as Overseas Student Health Cover (OSHC). Health insurance for overseas visitors, is called Overseas Visitor Health Cover (OVHC). These policies (with the exception of Budget Working and Budget Visitor Cover) provide you with a level of cover that is similar to the benefits Australians get from Medicare.

The Medicare Benefits Schedule (MBS) is a list of medical services (e.g. a standard consultation with a GP or surgery in hospital) subsidised by the Australian Government with a fee (known as a 'schedule fee') payable for each item.

The schedule fee is the amount the government considers appropriate for one of these services and determines the amount that Australians receive when they claim a medical service through Medicare. This schedule fee is then used to determine the benefit your international student health insurance or health insurance for overseas visitors (OSHC or OVHC) policy will cover when receiving medical treatment in Australia. Some providers in the Australian healthcare system will charge only the MBS fee. While other providers may charge more than the MBS fee, this creates a 'gap' or out-of-pocket expense. You should always check with your provider if they charge a gap fee prior to seeking treatment.

The applicable policy wording document clearly outlines the benefits covered under your chosen policy. Visit our website for more information about Overseas Student Health Cover (OSHC) and Overseas Visitor Health Cover (OVHC).