When do I need health insurance?

You are never obligated to take out health insurance. However, once you turn 31, you'll be hit with a Lifetime Health Cover (LHC) loading of 2% for every year you don't have hospital insurance.

What happens if I don't have private health insurance in Australia?

If you earn over 97k or 194k as a couple per year, you'll pay the Medicare Levy Surcharge (MLS). If you are 31 or older, but you never get private health insurance, you will never have to pay the Lifetime Health Cover loading – this only applies if you get insurance after you turn 31.

Do I need private health insurance for pregnancy?

No, it's entirely your choice. Medicare covers pregnancy but some people opt to go private because you get to choose your obstetrician and get your own room.

Will I still have out of pocket expenses with private health insurance?

Yes, you might. With private health insurance, Medicare typically pays for 75% of the MBS fee; insurance covers the remaining 25%. However, medical specialists aren't obligated to adhere to the MBS fee – it's just a recommendation. If they charge more, you might have out of pocket expenses, unless your fund has a gap cover agreement with the hospital.