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Personal Loans: Various Medical Expenses People May Want to Fund

Every year, Australians spend over A$30 billion on out-of-pocket health care costs. With the increasing costs of health care, many Aussies are already feeling the pressure, with most paying more to see specialists.

But some costs in life, such as health care expenses, can’t be ignored, given the importance of good health. If you require health services, but you’re in short of funds, personal loans can be an ideal financial fix. Whereas medicare in Australia is great for many, let’s face it, some Aussies simply prefer private healthcare and they fund it themselves.

A loan can help cover bills from hospitals, doctors, and any medical-related case. Here are instances you might want to fund with a personal loan.

Funding IVF Treatment

Depending on your circumstances, the cost of IVF treatment can be about A$9,000 to A$10,000 for the first cycle. The out-of-pocket expense can be about A$4,600. In some cases, the overall cost can go up to A$15,000.

Subsequent cycles in the same year may also attract out-of-pocket costs of over A$4,000.

Medicare can offer rebates for specific treatments, and its safety net was A$2,133, as of 2019. Also, if you’re struggling with large bills, you can get rebates once the cost reaches a certain threshold.

But most of the time, these rebates might not suffice your financial needs. Plus, some treatments don’t qualify for deductions such as Pre-Implantation Genetic Testing and freezing embryos. You might need to take out a loan to complete your treatments.

Giving Birth at Home

What is the cost of giving birth at home in Australia?

If you consider homebirth, keep in mind that you’re likely to spend more on out-of-pocket fees than at public hospitals. Your out of pocket costs will be about A$3,500 to A$6,000.

Private health insurance may cover some costs, but there are usually unexpected costs that you’ll have to settle. Examples include pathology tests and scans, extra towels, and hiring a pool for a water birth.

On average, you can expect to spend about A$4,500 on homebirth. A personal loan can help you meet the cost if you don’t have all the amount.

Personal Medical Equipment

A report by the Australian Institute of Health and Welfare revealed that Aussies usually pay a significant proportion of the cost of medical devices, supplies, aids, and appliances. One example is catheters, which attract an annual fee of about A$2,000 to A$7,000.

In Australia, the cost of cardiac stents is five times the price in New Zealand.

The high out-of-pocket cost in Australia is partly due to the high cost of medical devices and appliances. Also, the third-party contribution from insurance and other sources is usually low. Given the immense benefits of these devices, a loan could help you meet the costs.

Specialist Appointments

Prices for specialist consultations in Australia are high, with the average out-of-pocket cost standing at A$65.73. Bear in mind this is the cost for those health services that aren’t bulk-billed.

The fee for initial specialist consultations can go up to A$166. This amount is twice the Medicare Benefits Schedule (MBS) fee, which is about A$85.55. Also, you can expect to pay up to A$315 during the initial consultations with consultants.

With such costs, you might need to take a loan, particularly if you’re seeing a specialist several times a year.

Medical Surgeries

Medical surgeries can cost anything from A$2,500 to A$160,000, depending on the procedure. Heart and liver transplants are the most expensive. Generally, the total out-of-pocket costs of surgeries can be in thousands.

For example, if you have a knee injury that requires an operation, the cumulative fee can be about A$15,000. Medicare rebates can be about A$3,750, and private insurance can pay A$2,600 of the cost. Your out-of-pocket cost can be well over A$8,000.

If such an amount isn’t readily available, a loan could make an ideal financial fix.

Weight Loss Treatment

Depending on your medical insurance, weight loss surgery in Australia can cost between A$2,800 and A$18,000. Without insurance, the cost will be A$12,000 to A$18,000. If you have private insurance, you can expect to pay out-of-pocket costs of A$2,800 to A$7,000 after Medicare rebates.

Out of pocket fees for insured patients relate mostly to professional and clinic charges by anesthetists and surgeons. There are also several types of equipment, such as a lap band device, which rebates don’t cover. The good thing is that you can use superannuation to meet some of the costs.

But if you’re struggling to cover the cost, applying for a personal loan could be a sound decision.

Diagnostic Imaging

The new Morrison government pledged to reduce out-of-pocket costs for patients who need ultrasounds and x-rays starting from 1 July 2020. But radiology services in Australia have been costly and underfunded for a very long time.

In fact, over 300,000 Aussies forego early diagnosis every year because of the cost, according to the Australian Bureau of Statistics (ABS).

For example, the average cost of a CT exam is A$500 in Australia, with an out-of-pocket cost of about $34 to $145. If bulk-billing isn’t offered, you can pay up to A$300. Some high-end services can go up to A$4,000.

Final Thoughts

Personal health and well-being are important, but the costs involved in staying healthy can be pretty high. For some Aussies, forking out thousands of dollars one-time for medical services can be pretty tricky. This is even made worse when Medicare rebates and private insurance only meet a small proportion of the total cost.

But you can get relief with a personal loan. In Australia, many loan types are available to help you take care of medical expenses. We have unsecured loans, specialized medical loans, short-term loans, and credit cards that can cover your medical expenses. Just be sure to take the time to compare the interest rates, loan terms, fees, and monthly repayments.

Keep in mind that the loan can also cover travel expenses if you need to travel to get medical treatment.

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