Do 457 visa holders need to pay the MLS?

[sanjeev555]

Hi Amaslam,

Hope you are well. You have given me a lot of info. in my thread - Got a job in Melbourne, Please help me decide if the switch to Oz is worth it

I thank you a lot for that again .. I have decided to make the move to Aus., coz I don't have a job in the US right now, and the best thing would be to gain some international experience and also try out a new lifestyle. I know you had mentioned about 457 visa holders being exempt from the MLS and Medicare levy in one your posts in my thread. But I called a few private health insurance companies and I have gotten varying responses from all of them and I'm quite confused as a result.

My company recommended one particular Health Insurer called IMAN -Australia. They had some cheaper insurance rates, the most economical and reliable plan (120 Plan) cost me around $83 a month. The link is below,

IMAN Australian Health Plans - Health Plans for Temporary Residents Working in Australia
IMAN Australian Health Plans - Health Plans for Temporary Residents Working in Australia

But when I called them and asked them if I would be exempt from the MLS, they say that I would NOT because I need to take some other form of private insurance etc. and that they are only offering these plans for the 457 visa purpose. I'm confused there. I thought being a 457 visa holder with an Indian passport would automatically make me exempt from MLS? Or is the insurance company providing me with incorrect information?

I also remember you saying that I need to fill out a MLS exempt form and give it to my company when I start working for them. How would I show my company that I am MLS exempt? Do I need to get some letter from the government to prove it?

Oh well, I guess I'm still confused about the whole process. I also called Medibank Australia, and they had a $150 p/month insurance plan for overseas visitor health cover and they said that I would be exempt from MLS if I took their plan. This again added to my confusion.

So any help or correct info. about the whole MLS exemption procedures would be greatly appreciated!

[sanjeev555]

Reply from Amaslam:

Hi Sanjeev:

Plain and simple you don't have to pay MLS (the insurance companies don't always know this). The one offering the $83/month plan may not actually be valid for you (that is closer to a resident rate). I know for sure Medibank Private plan is valid as I was on one 6 yrs ago.

To help you out here is the link from the ATO:
Medicare levy exemption

The exemption is not from insurance rate anyway, it's mainly from an additional levy charged from your paycheck so it's a reduction of the tax you pay to ATO.

Originally Posted by sanjeev555

Hi Amaslam,

Hope you are well. You have given me a lot of info. in my thread - Got a job in Melbourne, Please help me decide if the switch to Oz is worth it

I thank you a lot for that again .. I have decided to make the move to Aus., coz I don't have a job in the US right now, and the best thing would be to gain some international experience and also try out a new lifestyle. I know you had mentioned about 457 visa holders being exempt from the MLS and Medicare levy in one your posts in my thread. But I called a few private health insurance companies and I have gotten varying responses from all of them and I'm quite confused as a result.

My company recommended one particular Health Insurer called IMAN -Australia. They had some cheaper insurance rates, the most economical and reliable plan (120 Plan) cost me around $83 a month. The link is below,

IMAN Australian Health Plans - Health Plans for Temporary Residents Working in Australia
IMAN Australian Health Plans - Health Plans for Temporary Residents Working in Australia

But when I called them and asked them if I would be exempt from the MLS, they say that I would NOT because I need to take some other form of private insurance etc. and that they are only offering these plans for the 457 visa purpose. I'm confused there. I thought being a 457 visa holder with an Indian passport would automatically make me exempt from MLS? Or is the insurance company providing me with incorrect information?

I also remember you saying that I need to fill out a MLS exempt form and give it to my company when I start working for them. How would I show my company that I am MLS exempt? Do I need to get some letter from the government to prove it?

Oh well, I guess I'm still confused about the whole process. I also called Medibank Australia, and they had a $150 p/month insurance plan for overseas visitor health cover and they said that I would be exempt from MLS if I took their plan. This again added to my confusion.

So any help or correct info. about the whole MLS exemption procedures would be greatly appreciated!

[sanjeev555]

Originally Posted by sanjeev555

Reply from Amaslam:

Hi Sanjeev:

Plain and simple you don't have to pay MLS (the insurance companies don't always know this). The one offering the $83/month plan may not actually be valid for you (that is closer to a resident rate). I know for sure Medibank Private plan is valid as I was on one 6 yrs ago.

To help you out here is the link from the ATO:
Medicare levy exemption

The exemption is not from insurance rate anyway, it's mainly from an additional levy charged from your paycheck so it's a reduction of the tax you pay to ATO.

Hi Amaslam,

I called the company offering the $83 p/month plan, and they said all their plans listed on the website (even the $60 p/month plan) are valid for the 457 visa. But they say it wont be valid for the MLS.

But I guess if I'm automatically valid for the MLS, I might as well take the $83p/month plan as it offers the same level of benefits as the $150p/month plan from Medibank. Your thoughts?

[amaslam]

Get the PDS (the documents about what the insurance provides). It should say somewhere within that this covers visitors to AU or foreign residents without PR. Otherwise I would be suspicious.

You don't have to purchase beforehand to get a PDS (Product Disclosure Statement).

Originally Posted by sanjeev555

Hi Amaslam,

I called the company offering the $83 p/month plan, and they said all their plans listed on the website (even the $60 p/month plan) are valid for the 457 visa. But they say it wont be valid for the MLS.

But I guess if I'm automatically valid for the MLS, I might as well take the $83p/month plan as it offers the same level of benefits as the $150p/month plan from Medibank. Your thoughts?

[sanjeev555]

Originally Posted by amaslam

Get the PDS (the documents about what the insurance provides). It should say somewhere within that this covers visitors to AU or foreign residents without PR. Otherwise I would be suspicious.

You don't have to purchase beforehand to get a PDS (Product Disclosure Statement).

It does say on the mainpage of the website, that all the plans cover the requirements for the 457 visa. "All Plans comply with the Department of Immigration and Citizenship (DIAC) health benefit requirements (visa condition 8501) for 457 and other 400 series visas."

And it was recommended by my employer for 457 visa holders, so I'm guessing they are right. Here is the PDS of the 120 plan (which is $83 a month).

http://www.austhealth.com/documents/...e21Sep2009.pdf

The only thing this insurance company said was, that if I needed to be exempt from MLS, I needed to take out basic private health insurance from another of their sister company like NIB etc. Maybe as you said, they are not really sure about the rules and the exemption categories for the MLS.

[amaslam]

I think it meets the minimum requirement. I remember when I was on my Medibank Private plan I also had GP visits and Dental covered (eye checks as well). This isn't mentioned in the link you sent so I think you are covered for hospital and surgery but not for regular preventative care (GP visits and dental). I think you'll need to find out what a GP charges or a Dentist charges when there isn't any insurance behind it. Also as a 457 you'll pay the full amount for prescriptions as the subsidized Medicare pricing will not be available to you.

Hopefully you are in good health so healthcare does not become a burden for you. but if you feel very concerned on this point then going for PR sooner is an option you can pursue.

Good luck

Originally Posted by sanjeev555

It does say on the mainpage of the website, that all the plans cover the requirements for the 457 visa. "All Plans comply with the Department of Immigration and Citizenship (DIAC) health benefit requirements (visa condition 8501) for 457 and other 400 series visas."

And it was recommended by my employer for 457 visa holders, so I'm guessing they are right. Here is the PDS of the 120 plan (which is $83 a month).

http://www.austhealth.com/documents/...e21Sep2009.pdf

The only thing this insurance company said was, that if I needed to be exempt from MLS, I needed to take out basic private health insurance from another of their sister company like NIB etc. Maybe as you said, they are not really sure about the rules and the exemption categories for the MLS.

[sanjeev555]

Originally Posted by amaslam

I think it meets the minimum requirement. I remember when I was on my Medibank Private plan I also had GP visits and Dental covered (eye checks as well). This isn't mentioned in the link you sent so I think you are covered for hospital and surgery but not for regular preventative care (GP visits and dental). I think you'll need to find out what a GP charges or a Dentist charges when there isn't any insurance behind it. Also as a 457 you'll pay the full amount for prescriptions as the subsidized Medicare pricing will not be available to you.

Hopefully you are in good health so healthcare does not become a burden for you. but if you feel very concerned on this point then going for PR sooner is an option you can pursue.

Good luck

Hi Amaslam, Thanks for your reply. Yes, this plan offers 100% cover for inpatient treatment. And it also pays upto 100% of the MBS fee for outpatient treatment (which I'm guessing is the GP visits? Don't doctors normally charge more than the MBS fee?)...I read that 457 visa holders are not covered for outpatient prescription medicines, which is pretty sad if you ask me. But I think this plan covers inpatient pharmaceuticals during hospitalization.

I am in pretty good health at the moment, and should do well with just the basic covers. I can always bring some basic medicines from my home country in the event of basic illness or cold symptoms. I guess I will go ahead and take this plan for the moment, and can think of upgrading/changing if the situation demands it when I get to Oz.

[amaslam]

Hi Sanjeev:

Good if it covers GP visits. Do find out more about this out-patient cover if that means the GP visits or only visits at a hospital.

Not all GPs charge more than the MBS schedule fee. You will find GPs that 'bulk bill' and that means they charge only the MBS schedule fee and not higher. That means the GP visit is essentially 'free' (meaning I don't pay anything when I show my Medicare card and see the doctor).

If you go for PR (which most people do) then you will be eligible for Medicare and can get bulk billed. For now as a 457 you will need to make a claim to the insurance everytime you visit the doctor.

Mainly you'll see a GP around the time seasons change as people get colds and flus around that time. Other than that no real health issues. Do watch out for obesity if you don't have an active lifestyle as that can lead to other more serious health problems. It's too easy as in IT you sit all day and must make efforts to have some physical activity in your life.

Originally Posted by sanjeev555

Hi Amaslam, Thanks for your reply. Yes, this plan offers 100% cover for inpatient treatment. And it also pays upto 100% of the MBS fee for outpatient treatment (which I'm guessing is the GP visits? Don't doctors normally charge more than the MBS fee?)...I read that 457 visa holders are not covered for outpatient prescription medicines, which is pretty sad if you ask me. But I think this plan covers inpatient pharmaceuticals during hospitalization.

I am in pretty good health at the moment, and should do well with just the basic covers. I can always bring some basic medicines from my home country in the event of basic illness or cold symptoms. I guess I will go ahead and take this plan for the moment, and can think of upgrading/changing if the situation demands it when I get to Oz.

[sattystevens]

Originally Posted by sanjeev555

It does say on the mainpage of the website, that all the plans cover the requirements for the 457 visa. "All Plans comply with the Department of Immigration and Citizenship (DIAC) health benefit requirements (visa condition 8501) for 457 and other 400 series visas."

And it was recommended by my employer for 457 visa holders, so I'm guessing they are right. Here is the PDS of the 120 plan (which is $83 a month).

http://www.austhealth.com/documents/...e21Sep2009.pdf

The only thing this insurance company said was, that if I needed to be exempt from MLS, I needed to take out basic private health insurance from another of their sister company like NIB etc. Maybe as you said, they are not really sure about the rules and the exemption categories for the MLS.

Hi Sanjeev, I don't want to confuse you any more but we've taken the IMAN health insurance as we're hoping to go on the 457 Visa (but not indian passport). It's all above board and they are actually in the list of recommended Australia Health Insuance Companies found in the Immigration webpage. We too were a bit wary on their web page. But they have been really good and they even sent a DIAC compliance letter as this is now required as part of the visa condition since 14th September 09. we're joining the 390 Family plan. They were very helpful and true to theior word as within 24 hours they had sent the DIAC covering letter to us as well as our migration agent, all that we needed to pay was $50 and the plan does not start til we land in OZ. As part of the new visa 457 condition unless you are eligible for Medicare you will need to have some private health insurance set up. The NIB is a plan that you can take out when you become PR. Just make sure that the plan that you have will be sufficient for DIAC approval as our migration agaent had advised that the 390 or 320 plans were better for us as we were a family and that the DIAc would not ahve any problems with this. the only difference is that as we are British Citizens we are eligible to enrol onto medicare straightaway so will only need the insurance temporarily.

I hope that info was useful to you as I didn't want to add any more confusion, best of luck

xx Satty

[sanjeev555]

Originally Posted by sattystevens

Hi Sanjeev, I don't want to confuse you any more but we've taken the IMAN health insurance as we're hoping to go on the 457 Visa (but not indian passport). It's all above board and they are actually in the list of recommended Australia Health Insuance Companies found in the Immigration webpage. We too were a bit wary on their web page. But they have been really good and they even sent a DIAC compliance letter as this is now required as part of the visa condition since 14th September 09. we're joining the 390 Family plan. They were very helpful and true to theior word as within 24 hours they had sent the DIAC covering letter to us as well as our migration agent, all that we needed to pay was $50 and the plan does not start til we land in OZ. As part of the new visa 457 condition unless you are eligible for Medicare you will need to have some private health insurance set up. The NIB is a plan that you can take out when you become PR. Just make sure that the plan that you have will be sufficient for DIAC approval as our migration agaent had advised that the 390 or 320 plans were better for us as we were a family and that the DIAc would not ahve any problems with this. the only difference is that as we are British Citizens we are eligible to enrol onto medicare straightaway so will only need the insurance temporarily.

I hope that info was useful to you as I didn't want to add any more confusion, best of luck

xx Satty

Hi Satty,

Many thanks for your reply and clarifications ...Its good to know someone else whose going the same route as me w.r.t visa and health insurance. I signed up for the 120 plan yesterday myself. The only difference was, since I was going to arrive in Aus. in Dec., IMAN asked me to pay for the first month of the plan instead of just the $50 to get the certificate. I did the application online and they said that the plan won't start until I arrive in Oz. I'm still waiting on them to send the HIC and other relevant documents, but they said they would do so early next week.

By the way, Have you already got your 457 visa approved? Which city in Oz. are you moving to, and when?

The only bad thing about IMAN so far has been the lack of knowledge of the MLS exemption by any of their Customer service representatives. They ask me to take private basic cover from NIB to avoid the MLS, but when I go to the NIB website, it clearly says that the health plans are only for PR's in there. In any case, I think amaslam has better experience with this, and he should be right about 457's not having to pay the MLS. I guess I will find out for sure once I move there.