Overseas student health cover (OSHC) in Australia. Do you need it - how does it work?

If you're an international student considering coming to Australia to study, it's crucial to understand how you are going to look after your health while you are here. Overseas Student Health Cover (OSHC) is what you’ll need to get you through many unforeseen health crises while studying in Australia.

This article will provide you with an overview of what an OSHC policy is, how it works and if you really need it.

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What is Medicare in Australia and can you use it as a visitor

Medicare is Australia's public healthcare system. It offers a wide range of free or subsidised healthcare services including General Practitioners (GP) and various medical specialists at low to no cost to those eligible.¹ It can be utilised and accessed by²:

• Australian citizens
• New Zealand citizens
• Holders of a permanent visa or residence in Australia
• Students from countries like Norway, Sweden or Belgium who are covered by a reciprocal healthcare agreement with Australia.

Unfortunately, other overseas students do not have access to Medicare or its benefits. Instead, they are required to purchase OSHC.³ If an overseas student does not have OSHC and has a medical emergency, they will be responsible to foot the bill of the services used.²

What is Overseas Student Health Cover (OSHC)?

OSHC is a type of private health insurance that helps students be able to meet their healthcare needs while studying in Australia. The policy is designed to alleviate all or some of the costs of Australia’s medical services for those ineligible for Medicare.³

Is OSHC mandatory/required for International Students?

Overseas Student Health Cover (OSHC) is a mandatory requirement for international students planning to study in Australia. A policy must be obtained prior to arrival in Australia and should correspond with the duration of the intended Student Visa.³

Coverage and Benefits of OSHC

There is a wide spectrum of policy options that vary in price. At a minimum, all available OSHC policies are required to include the following coverage²:

• Full reimbursement on services apart of the Medicare Benefits Schedule (MBS)
• 100% coverage of the MBS fee for in-patient medical services in hospital
• Accommodation in public hospital and private hospital shared wards.
• Cover for specific prosthetic devices
• Cover on ambulance services

OSHC policies also come with a pharmaceutical benefit. This helps mitigate some of the potential out-of-pocket expenses, particularly unexpected illnesses that require pharmaceutical interventions.

What is not covered by OSHC

OSHC does not provide cover for services that are considered extras. This can include²:

• Elective cosmetic surgery
• Stem cell treatment
• Organ transplant
• Bone marrow transplant
• Assisted reproductive treatments

If you do want coverage for these and a wide-range of other extras including alternative therapies, you will need to³:

1. Find a provider that offers Extras such as these as an addition to your hospital's cover.
2. Purchase a separate private insurance policy once you arrive in Australia to cover any alternative medical service needs you require.

It also doesn't cover travel insurance type claims such as lost baggage or travel delays. This means for any travel to, within or outside Australia, taking out an extra travel insurance policy is recommended.³

Read more: International student bank accounts in Australia. All you need to know

What are the eligibility requirements

The main eligibility requirement to be able to purchase OSHC insurance is by being an overseas student coming to Australia to study on a Subclass 500 student visa. If you are moving to Australia on another visa subclass or type, you will have to organise a different health insurance policy such as Overseas Visitor Health Cover (OVHC).³

How to obtain coverage — Major providers of OSHC

Only insurers that have entered into the Australian Government Deed for the Provision of Overseas Student Health Cover (OSHC) are authorised to offer OSHC products. There are six private health insurers offering OSHC coverage currently. These include³:

• ahm OSHC
• Allianz Global Assistance
• Bupa Australia
• CBHS International Health
• Medibank Private
• NIB

You can generally buy a policy directly online with all these providers. To do this, you can follow these steps to obtain your coverage:

1. Visit your preferred providers website
2. Find the OSHC policy offers
3. Choose the insurance policy that best meets your need and budget
4. Set a date for your policy to start and input your details
5. Pay for your OSHC policy
6. Receive your new policy

It is also possible that you’ll be able to purchase the policy directly through the Australian university you will be attending, a migration agent or an education agent liaising with you and your chosen institution.³

What’s the cost

Each OSHC provider will have different levels of cover to choose from. We’ll have a look at the costs for each major provider of OSHC in the below table.

Insurer	Policy Cost (AUD)
Allianz Global Assistance	$627.00 per year⁴
Bupa Australia	$691.68 per year⁵
AHM	$570.55 per year⁶
CBHS International Health	$569.40 per year⁷
Medibank Private	$579.00 per year⁸
NIB	$575.00 per year⁹

In some cases, your Australian university might have a partnership with any of the above insurers with policies only available by purchasing directly with the university itself.⁸

Read more: Travel Insurance for visitors to Australia. Your quick guide

Making claims and using OSHC

Depending on the insurer you choose will determine the claims process. In some cases, some medical service providers will directly bill your insurer. To take advantage of this option, you have to find a direct medical billing provider and make sure that your insurer is one of their partners.

If you don’t do this, each insurance provider will have their own process to make claims. For example, if you go with Allianz Global, you can make claims directly through their mobile application attached to your account or send your filled out claim form by email.¹⁰

If you have any pre-existing conditions, this can attract waiting periods before you can make claims for any services required for that condition.³

The Wise Account

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Sources:

1. Medicare info
2. Department of Home Affairs Insurance
3. Department of Health, OSHC factsheet
4. Allianz global policy price
5. Bupa policy
6. AHM OSHC policy
7. CBHS Insurance policy
8. Medibank Private policy
9. NIB policy
10. Allianz global claims

Sources checked on: 12 September 2023