When does 'self insuring' make sense?

For most health care needs we all have insurance through the universal coverage of Medicare. If one chooses to go public for all treatment or has a concession the costs are minimal.

There are many without any additional (private) health insurance. Is it really a choice? If seeking treatment/s outside of the public system, is it for some a conscious choice that they can afford the extra costs, and for others that they cannot?

  • Does not having private health insurance make sense?
  • Is there value in having private cover?
  • Is there a more significant discussion to be had about the relative costs, value and performance of the national health care systems?

There is a long and ongoing discussion in the Community Health Insurance and Money Categories.

I can’t speak for @lg16447 but somewhat related: International students asked to pay up-front before emergency treatment in Queensland hospitals - ABC News

This is Queensland public hospitals, not private surgeon, but the risk to the service provider is the same i.e. that the provider is extending credit to the patient and that the debt will never get paid (for whatever reason).

I think a legitimate point has been made. This is an additional consideration, beyond the financial consideration for the self-insurer. That consideration is: proving your ability to pay - which is different from the more obvious “actual ability to pay”. In other words, the financial consideration is for the service provider.

Just for fun: If “you” are a victim of the Optus data breach and you locked your credit report, due to concerns about identity theft’s being used to obtain credit in your name, then you won’t be able to demonstrate the credit risk that you pose. So that could make a medical service provider even less keen to extend you credit.

What about public liability, if someone say, falls through your balcony and becomes a paraplegic? This is the risk which concerns me most.

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Usually comes with building and contents insurance (for a private residence).

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Hi @ellismje, welcome to the community.

I am a bit like you and why I made the earlier post. While I am not overly risk adverse, I look at risks and outcomes. While someone slipping over might be a very low frequency event (extreme rare), if one does not have insurance (or even tries to self insure) then the impact of someone slipping could be a financial nightmare for the rest of one’s (building owner’s) life.

Yes, it could bankrupt an uninsured person.

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