Medicare vs Medibank
Health care has become very expensive these days and treatment for ailments in a hospital have gone beyond the means of common people. It is not just the prices of drugs but fees of doctors and hospitalization charges have become so high that is prudent to get some sort of medical insurance to pay for medical emergencies. This is where Medicare and Medibank come into play if you are an Australian citizen. Many people remain confused between Medicare and Medibank as they do not know the differences. Here is a brief description of these two terms that will enable such people to go for the right health insurance plan that suits their requirements.
This is public healthcare system funded and operated by a government authority called Medicare Australia. It intends to provide subsidized medical treatment to all citizens and permanent residents. Citizens are provided with a Medicare card and they become eligible for a rebate in medical care from medical practitioners who have a Medicare provider number and free treatment in government hospitals. People confuse it with Medibank because Medicare, when introduced in 1975, was named Medibank. It was in 1984 that it got its present name Medicare.
Since 1999, Medicare has got a boost with government supplementing it with Private Health Insurance Rebate program. Under this program, government pays for 30% of health premiums of people who have got some health cover by any private health insurance company.
Though government owned, Medibank is the largest private health insurance company that issues health insurance policies to Australian citizens. It is present in every Australian state and territory. This is a company that not only provides health insurance but also provides health solutions. Till 2009, Medibank was run as a not for profit company, but labor government in 2009 announced that Medibank would be transformed into a for profit company and will have to pay taxes on its earnings.
• Medibank and Medicare are two integral components of Australia’s health care system.
• While Medicare was introduced as Medibank in 1975, it got renamed as Medicare in 1985.
• While Medicare today is the universal healthcare system funded by government in Australia, Medibank is largest health insurance provider in the country.