Which statement is true about PHI disadvantages?

• A. It can be costly in terms of premiums
• B. Some policies have a gap the individual pays
• C. It guarantees free care in public hospitals
• D. Policies can be complex and hard to understand

Answer: (C)

Private health insurance brings benefits and downsides. The statement that it guarantees free care in public hospitals isn’t accurate. In Australia, care in public hospitals is funded by Medicare and is generally free for eligible patients, regardless of private insurance. Private health insurance mainly covers private hospital admissions or extra services, but it can still involve out-of-pocket costs like premiums and gaps, and policies can be complex with different levels of cover and exclusions. So the real disadvantages to understand are the potentially high premiums, possible gap payments, and the complexity of different policies.