OSHC vs OVHC vs Medicare: Australia’s public healthcare system explained

OSHC is health insurance designed specifically for international students studying in Australia.

If you hold a student visa (subclass 500), you must have OSHC for the entire length of your visa. This is a requirement set by the Australian Government. You will need to supply your certificate of insurance with your student visa application. In addition, your education provider will usually ask for proof of OSHC before you can enrol.

OSHC gives you a similar level of cover to what Australian residents get through Medicare. This means you can access medical care without facing large, unexpected bills.

• GP (doctor) visits
• Hospital treatment (public and private)
• Emergency ambulance transport
• Some prescription medicines listed on the PBS

Overseas Visitor Health Cover (OVHC) is health insurance for people visiting or working in Australia who aren't on a student visa.

If your visa has condition 8501, you must have health insurance that meets the Australian Government's requirements. Insurers offer a range of OVHC products, it’s important to check the policy you are purchasing is 8501 compliant. 

OVHC comes in different levels, from basic hospital-only cover to more comprehensive options that include GP visits and extras like dental and optical.

• Skilled worker visa holders
• Visitor visa holders
• Temporary graduate visa holders (subclass 485)

Coverage depends on the product level you choose:

• Budget cover: Hospital treatment only.
• Standard cover: Hospital, GP visits, ambulance, some prescriptions.
• Mid and Top cover: All of the above plus extras like dental, optical, and physiotherapy.

Some OVHC products exclude certain treatments, such as pregnancy-related care or specific medical conditions. Always check the product details before you buy.

Medicare is Australia's public healthcare system. It provides free or low-cost medical care for Australian citizens and permanent residents.

Most international students and visitors cannot access Medicare. This is why OSHC and OVHC exist.

Some visitors from countries with a Reciprocal Health Care Agreement (RHCA) may have limited access to Medicare. These countries include the United Kingdom, New Zealand, and several European nations. You can check your eligibility on the Service Australia website.

• GP visits (often bulk-billed, meaning free at the point of care)
• Treatment in public hospitals
• Tests, scans, and x-rays
• Prescription medicines subsidised through the PBS
• Eye test by optometrists

• Ambulance transport (in most states)
• Most dental care
• Glasses and contact lenses and hearing aids
• Cosmetic surgery
• Private hospital treatment (without private health insurance)

The table below summarises the main differences between each type of cover.

The Medicare Benefits Schedule (MBS) is a list of medical services with set fees. The Australian Government uses these fees to determine how much Medicare pays for each service.

Your OSHC or OVHC policy uses the same schedule. For example, if the MBS fee for a GP visit is $42.85, your policy will typically cover 100% of that amount.

Some doctors charge only the MBS fee, meaning you pay nothing out of pocket. Others charge more, which creates a gap. Always ask your doctor about their fees before your appointment.

Choosing the right cover is straightforward once you know your visa type. Here's a simple guide:

1. Check your visa type and conditions on the Department of Home Affairs website.
2. Student visa? You need OSHC.
3. Working or visitor visa with condition 8501? You need OVHC.
4. From an RHCA country? You may have some Medicare access, but check your visa requirements first.
5. Permanent resident or citizen? You're covered by Medicare.

When choosing your cover level, think about your health needs. If you wear glasses or need regular dental check-ups, a policy with extras cover may save you money in the long run.

Also check the waiting periods. Most policies have a 12-month waiting period for pre-existing conditions. This means you can't claim for treatment related to a condition you had before your cover started until 12 months have passed.

Understanding the difference between OSHC, OVHC, and Medicare helps you choose the right cover for your situation. In short:

• OSHC is for international students on a student visa.
• OVHC is for visitors and workers on other visa types.
• Medicare is for Australian citizens and permanent residents.

Make sure your cover lasts for your entire visa period and meets any visa conditions. If you're unsure which cover you need, check your visa details on the Department of Home Affairs website or contact us for help.