Private medical insurance works in a very simple way.  You take out a policy, pay a monthly premium, and then make a claim when you need to use it! This kind of coverage can help you access private medical care for non-emergency treatment (both as an in-patient and as an outpatient).  So, what types of medical insurance are available? The majority of medical insurance policies all work in the same way and the way you differentiate between types of medical insurance is the coverage that you are given. So, for example, some types of private health insurance will give you basic coverage while others will give you a more comprehensive service. As you might expect, you’ll pay less for basic coverage and more for extra features!

How to understand coverage with private health insurance

At a basic level you should expect to get coverage for:

• Operations and in-patient treatment
  
  
• Tests, consultations, and treatments relating to inpatient care

At a mid-range level you will probably add:

• General consultations, tests, and diagnostic procedures
  
  
• Alternative treatments
  
  
• Some out-patient treatments

At a comprehensive level you can expect to see some/all of the following:

• Full in-patient and out-patient coverage
  
  
• Psychiatric coverage
  
  
• Dental coverage
  
  
• Recuperative care
  
  
• At home care costs
  
  
• Expenses (during in-patient stays)

The actual coverage you get will depend on the types of medical insurance policy you choose. Most insurers will have their own ways of figuring out what bang you get for your buck! So, even with basic types of private health insurance policy, you may get coverage from a higher range, but there may be an annual limit on costs. So, for example, you may be offered out-patient coverage, but only up to a limit of $1000 a year. The insurer may extend this coverage depending on the policy option you choose and probably won’t put limits on coverage for many treatments and procedures with its top of the range policies.

The key thing to remember when you are looking at the various types of medical insurance coverage open to you is consider how much coverage you need. If you are happy paying some costs yourself (such as consultation fees) but would then like the insurer to kick in if you need an operation, then look at basic types of private health insurance.

If, however, you want coverage from the word go so that you don’t have to pay any costs then look at more comprehensive types of medical insurance as an alternative. But, whichever types of private health insurance you choose, make sure to shop around for quotes.  This way you’ll get the medical insurance coverage you need at a better cost.                            

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