The Medicare mistake that's costing travellers thousands
Medicare has helped Aussies cover the cost of many essential medical and hospital expenses – but the safety net could only expand so far.
Many Australians are unsure whether Medicare covers them when they are going on trips. According to a new survey by Compare Travel Insurance, 82 per cent of travellers do not know whether the health care system provides the same level of protection for them on a domestic cruise.
The answer is quite tricky. The Department of Foreign Affairs and Trade said cruise passengers can access Medicare benefits only if they are travelling between two Australian ports with no stops outside the country. You also have to be treated by a Medicare-accredited doctor.
Medicare will not cover passengers making journeys between an Australian port and a foreign port or between two foreign ports.
Smartraveller advised travellers to check before their trip if their ship has a Medicare-accredited medical professional onboard. However, that may not be enough to ensure that you’re covered, said Compare Travel Insurance director Natalie Ball.
“It’s astounding to see how many Aussies are under the misconception that Medicare covers you while cruising domestically,” Ball said.
“In fact, Medicare coverage is restricted to around 20km from Australian ports, which means that once you’re out on the water, you’re on your own in terms of healthcare.”
Ball warned that medical costs on a cruise ship can be far more expensive than passengers expected. “With passengers restricted to health care on board, medical costs and doctors’ fees on a ship can be unexpectedly pricey,” she said.
“Infirmary bills can be as much as $5,000 per day and consultations and medications are usually charged at private, costly rates. Then there are the frightening fees you’d expect to pay for helicopter evacuation while at sea.”
Smartraveller advised holidaymakers to purchase travel insurance that covers onshore activities and shore excursions.
Frank Armstrong said he managed to avoid a $59,000 bill incurred on a cruise trip between Australia and America thanks to his travel insurance.
The 81-year-old, who was travelling with his wife Leah on Ovation of the Seas, suffered a heart during his 16-day vacation. “It was a holiday filled with such excitement and then absolute disaster – I had a heart attack,” Armstrong said.
“As soon as we reached land in Tahiti, an ambulance rushed me to the main hospital which had been informed of my situation. There was a cardiologist already waiting as I went straight into surgery where they operated on me for over two hours putting two stents into my arteries.
“After the surgery I spent five days in hospital and five days recuperating. When I was fit to fly, I was flown back home to Australia which was all paid for by my travel insurer.”
The total costs of medical treatments, hospital stay, cruise cancellation and flight rescheduling amounted to about $59,000. However, Armstrong’s medical claims were taken care as he had paid $1,100 for his travel insurance. “It’s hard to imagine how they would have covered these expenses had they not had travel insurance,” Ball said.