What happens if someone is unemployed goes overseas or simply chooses to drop out for a while?
The Government recognised that there are going to be times when people need to drop their hospital cover. For example, if people are travelling overseas for extended periods of time or in the case of unemployment. To cater for this, people can drop their hospital cover for up to 24 months, cumulative, without having to pay an additional loading when they are ready to take out hospital cover again. Health funds currently have discretion to allow periods of absence to members if they wish. The Government expects that health funds will still use their discretion to consider increasing the allowable period of absence beyond 24 months in circumstances of genuine hardship such as long term unemployment or extended overseas postings. If a member drops their membership for longer than 24 months, without their health fund agreeing to an extension, they will be required to pay a loading for each additional period of 12 months absence if they return to private health insurance. They will still pa
