Medicare vs OSHC: A Guide to Health Insurance in Australia?
Medicare and OSHC both help people manage healthcare expenses in Australia, but they are designed for different groups. Medicare is intended for eligible residents and certain visitors, while OSHC helps international students access eligible medical and hospital services during their studies.
Melbourne Sphere editors · Editorial team
5 min read
In this article
Moving to Australia to study? Understanding the difference between Medicare and Overseas Student Health Cover (OSHC) is important before you arrive. Both help people manage healthcare costs, but they serve different purposes and have different eligibility rules.
The main difference: Medicare is Australia's public healthcare system for eligible residents and certain visitors, while OSHC is private health insurance designed for international students. Most international students on a Student visa (subclass 500) need to maintain OSHC throughout their stay.
What Is Medicare in Australia?
Medicare is Australia's publicly funded healthcare system. It helps eligible people pay for certain medical services, treatment in public hospitals as public patients, and some prescription medicines through related government programs.
You may be eligible for Medicare if you are an Australian citizen, permanent resident, eligible New Zealand citizen, or certain other qualifying visa holders. Visitors from some countries may also receive limited benefits under Reciprocal Health Care Agreements. Having a temporary visa does not automatically make you eligible.
What does Medicare cover?
Eligible GP and specialist services, subject to Medicare rules and benefits.
Treatment as a public patient in a public hospital.
Rebates for some medical tests and procedures.
Subsidised medicines through the Pharmaceutical Benefits Scheme, where eligible.
Medicare does not cover every healthcare expense. For example, routine dental care, most glasses and contact lenses, and many ambulance services are generally not covered by Medicare.
What Is OSHC?
Overseas Student Health Cover (OSHC) is private health insurance for international students studying in Australia. It helps with the cost of eligible medical and hospital treatment while you study.
For most international students on a Student visa, OSHC must be maintained for the required period of their stay. Policies differ, so it is important to review benefits, exclusions, waiting periods and out-of-pocket costs before choosing a provider.
What does OSHC usually cover?
Visits to a general practitioner (GP), subject to policy benefits.
Eligible specialist consultations.
Covered hospital treatment and surgery.
Some prescription medicines, up to policy limits.
Ambulance services, according to policy terms.
Important: Basic OSHC generally does not cover routine dental, optical or physiotherapy services. Some insurers offer additional cover, but you should check the exact policy rather than assume these services are included.
Medicare vs OSHC: Key Differences
Feature | Medicare | OSHC |
|---|---|---|
Main purpose | Public healthcare for eligible people | Health insurance for international students |
Who can use it? | Eligible residents and certain visitors | Students and eligible dependants under applicable policies |
Doctor visits | Eligible services may be free or subsidised | Covered according to policy benefits |
Hospital treatment | Public-patient treatment for eligible people | Eligible hospital treatment, subject to policy terms |
Prescription medicines | Some medicines subsidised | Some medicines covered, with limits |
Dental and optical | Generally not covered by Medicare | Usually excluded from basic OSHC |
Is it required for most student visa holders? | No | Yes, for the required period |
These are general comparisons. Actual benefits depend on Medicare eligibility, the service received and the terms of the insurance policy.
Can International Students Get Both Medicare and OSHC?
In some circumstances, yes. Certain international students may qualify for Medicare through a Reciprocal Health Care Agreement or another eligibility category. However, Medicare eligibility does not automatically remove the requirement to hold OSHC for a student visa.
For example, students from some countries may qualify for limited Medicare benefits while still needing OSHC. Check the rules that apply to your nationality and visa before making changes to your insurance.
How to Choose the Right Health Insurance
If you are an international student preparing to study in Australia, these steps can help you choose suitable cover.
1. Confirm your visa requirements
Check your visa conditions and the period for which you must maintain OSHC. Make sure your policy dates match your required stay.
2. Compare OSHC providers
Review premiums, GP benefits, hospital cover, medicine limits, waiting periods, direct-billing options and possible gap payments.
3. Check extra healthcare needs
If you need dental, optical or physiotherapy services, find out whether optional extras are available and whether the additional premium is worthwhile.
4. Learn how to claim
Save your insurer's contact details and membership card. Before appointments or treatment, ask about the total fee, the amount covered and any out-of-pocket costs.
Official Australian Government guidance recommends checking policy benefits and exclusions carefully because OSHC plans can differ in cost and coverage.
Where Can You Compare OSHC Plans?
You can start with the following providers listed by the Australian Government's Study Australia website:
ahm OSHC
Allianz Care Australia
Bupa Australia
CBHS International Health
Medibank
nib OSHC
Compare equivalent policy types and coverage periods rather than looking at the premium alone.
Frequently Asked Questions
1. Is Medicare free in Australia?
Some eligible Medicare services are free when the provider bulk-bills the patient. Other services may involve out-of-pocket expenses.
2. Do international students need OSHC?
Most international students on a Student visa (subclass 500) must maintain OSHC for their stay, subject to applicable exemptions.
3. Does OSHC cover dental treatment?
Basic OSHC generally excludes routine dental treatment. Some insurers offer optional extras at an additional cost.
4. Can I use Medicare instead of OSHC?
Not simply because you are studying in Australia. You must qualify for Medicare, and most international students still need OSHC to meet their visa requirements.
5. What happens when my student visa ends?
Your eligibility to hold OSHC may change when your student visa ends. Contact your insurer to discuss suitable cover for your next visa or residency status.
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