Essential Terms to Consider for Australia Health Insurance Plan

You must have heard about health insurance and its benefits and needs, right? But do you know it is mandatory for those migrating to Australia to have adequate health insurance? It is one of the compulsory documents an overseas visitor or student should have while applying for a visa.

For visitors, adequate health insurance is known as overseas visitor health cover (OVHC); for students, it’s called overseas student health cover (OSHC). This adequate health insurance plan provides coverage from the hospital and medical expenses in case of getting ill or having a mishap during the person’s stay in Australia.

Due to Australian law, international visitors or students cannot have the benefits of Medicare; Medicare is a public healthcare system that provides free or low-cost treatments or medicines in public hospitals to Australian permanent residents and citizens. So, the Government of Australia mandates overseas visitors/students to have health insurance plans.

Some primary benefits are doctor visits, hospital treatments, ambulance services, and medications under OSHC/OVHC policy.

Who are Health Insurance Providers?

There are many top leading health insurance providers in the world (such as BUPA, nib overseas visitor health cover, Medibank, ahm, etc.). Still, most people go for cheap or low-price policies/plans even though many health insurance companies provide the cheapest OSHC or cheapest OSHC for families.

It is always better to know the health insurance plan before buying, whether they are students or visitors. So as a person, try to compare the plan/policy first, then purchase.

Also Read: Best Investment Plan for Senior Citizens

Essential Terms to Consider

The person must consider these essential terms (below) before purchasing the health insurance plan.

  • Coverage -?Before buying any health insurance plan, the person must check for the coverage they are getting on that particular plan.
  • Premium -?It is a particular amount a person must pay to have the benefits of an overseas health insurance plan, whether or not to receive hospital and medical services.
  • Deductibles -?The amount paid by the person before their health insurance coverage starts. For example, suppose the deductible amount is $1,000; it’s an out-of-pocket cost paid by the person to receive the benefits. This amount will cover procedure fees, special visits and some medications.
  • Co-pay or Coinsurance -?Many people think deductibles are the same as co-pay, but they are entirely different. The co-pay is the fee for covered services and medicines, and coinsurance is the percentage of costs one pays for prescriptions.
  • Medicines Coverage -?The insurer provides a list of medicines (Known as a formulary) they cover in the plan. If some medicines are not listed on the formulary, the person must undergo a lengthy process to obtain the cover.

Can Health Insurance Policy Transfers?

Yes, OSHC/OVHC policy can be transferred, but some providers ask for refundable transfer fees.

How to Renew the OSHC/OVHC policy?

A person can renew their OSHC/OVHC policy via:

  • Online -?one can prepay using a credit card.
  • Educational institution campus (only students) -?on behalf of a health insurance company, some educational institutions receive the OSHC prepayment.
  • Post -?one can send the printed renewal form with a money order/cheque by post.

Please Note:?If someone’s visa expires or expires, they must renew or extend their health insurance plan (OSHC/OVHC) first and receive a new membership card along with a new due date. Then contact the Department of Immigration to extend and apply for their respective visas.


Overseas students and visitors must have health insurance and understand the health insurance plan. Health insurance is one of the mandatory documents needed for visa applications. It provides coverage of hospital and medical expenses throughout the stay in Australia; with that benefit, the student and visitors can live, study and work in Australia stress-free. For more information regarding Australian health insurance plans, people may contact Budget Policy; their health insurance team assists people worldwide in choosing the best health insurance policy according to their profile.

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