A reciprocal country has a health care agreement with Australia, which entitles its residents to medically necessary care in a public hospital anywhere in Australia.
As a resident of one of these countries, you may be entitled to the following care or treatments while you are in Australia:
- medically necessary care out of hospital
- medically necessary care as a public patient in a public hospital
- some Pharmaceutical Benefits Scheme (PBS) prescription medicines at the general rate.
The key-word here is ‘medically necessary’. Reciprocal health care agreements aren’t designed to replace travel insurance or private health insurance. If you rely on a reciprocal agreement, you may have to wait a while before you’re treated, even for emergency treatment. Taking out private health insurance means you won’t have to go on a public waiting list, once you’ve served the applicable waiting periods. What’s more, you’ll be able to choose your own doctor and hospital.
Please note: If your income exceeds the income threshold set by the Australian Taxation Office, you may be liable for the Medicare Levy Surcharge (MLS) at the end of the financial year, depending on your circumstances and eligibility. To potentially reduce your MLS, you may wish to consider holding an eligible domestic hospital policy in addition to your Overseas Visitors Cover (OVC), as OVC is generally not recognised by the ATO for MLS exemption purposes.
For advice specific to your circumstances, please contact your tax adviser or the Australian Taxation Office.