What does my private health insurance cover?

Your private health insurance typically covers these three areas differently:

• Hospital fees: Usually covered in full after you pay your annual excess (often around $500 per year instead of paying the full hospital bill of $1,800+ per admission)
• Anaesthetist fees: Generally well covered by your insurance
• Doctor/Surgeon fees: This is where you might face "gap" payments - the difference between what your insurance pays and what the doctor charges

The Real Cost Benefit

The magic happens with multiple admissions in one calendar year. Here's why:

Let's say you need two procedures in one year.

Without insurance, you might pay:

• First admission: $1,800+ hospital fees, plus doctor and anaesthetist fees
• Second admission: Another $1,800+ hospital fees, plus more professional fees

With private health insurance:

• You pay your $500 excess once for the entire year
• Both hospital stays are then covered
• Your anaesthetist fees are covered for both procedures
• You only pay any doctor "gaps" if they exist

So in summary, instead of potentially paying $3,600+ in hospital fees alone for the two admissions, you would pay just $500 for the year.

These savings compound with each additional admission, making private health insurance particularly valuable if you need multiple treatments, or have ongoing health issues requiring hospital care.