Planning a Trip? Why 'Medicare' Won't Save You and You Need Travel Insurance ASAP

Planning a Trip?

For Australians, taking a trip to Bali, Thailand, or the ski slopes of Japan is a rite of passage. We pack our swimmers, our passports, and our sense of adventure.

But there is one critical item many Aussies leave behind: Travel Insurance.

There is a dangerous misconception that "I'll be fine, and if something happens, the Australian Embassy will help me."

Reality Check: The Australian Government will NOT pay your hospital bills overseas. And Medicare? It stops working the moment you leave Australian airspace.

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The "Bali Scooter" Nightmare

This is the most common story in Aussie news. A tourist rents a scooter in Bali, crashes, and suffers a brain injury or broken bones.

• The Cost: Emergency surgery and a "Medical Evacuation" (Air Ambulance) flight back to Australia can now cost upwards of $100,000 to $250,000 depending on the location.
• The Trap: If you were riding without a valid Australian motorcycle license (matching the engine capacity) AND an International Driving Permit (IDP), or without a helmet, your travel insurance will reject the claim.
• The Lesson: Read the fine print. Standard policies often exclude "adventure activities" or motorcycle riding unless you pay extra for an add-on.

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What About "Reciprocal Health Care Agreements" (RHCA)?

Australia has agreements with 11 countries (like the UK, NZ, Italy) where Medicare gives you some coverage.

But be careful:

• It usually only covers "essential emergency care" in public hospitals.
• It does NOT cover medical evacuation flights back home.
• It does NOT apply to popular destinations like Indonesia (Bali), Thailand, USA, or Japan. In Japan, you must pay 100% of medical costs upfront, which are extremely high.

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Credit Card Insurance: Is It Enough?

Many premium credit cards (Amex, ANZ Black, etc.) offer "Complimentary Travel Insurance." It sounds great, but it often has dangerous holes:

1. Activation Required: You often must pay for your full return flights (or a minimum of $500) using that specific card to activate the cover.
2. Pre-Existing Conditions: Most credit card policies automatically exclude pre-existing medical conditions (like asthma, diabetes, or heart conditions) without an option to pay extra to cover them.
3. Age Limits: Coverage often stops or reduces significantly if you are over 65 or 70.

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When Should You Buy It?

The moment you book your flight.

Why? Because Travel Insurance also covers "Cancellation."

If you get sick (e.g., COVID-19 or a broken leg) a week before your trip and cannot travel, the insurance will refund your non-refundable flights and hotels. If you wait until the day before you fly to buy insurance, you aren't covered for anything that happened before that date.

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The Golden Rule of Travel

There is a famous saying by the Australian Government's Smartraveller website:

"If you can't afford travel insurance, you can't afford to travel."

Don't risk your family's financial future for the sake of saving $100. Buy a comprehensive policy, print the emergency assistance number, and travel with true peace of mind.

General Advice Warning: The information provided in this article is general in nature and does not take into account your personal financial situation or needs. Terms, conditions, limits, and exclusions apply to all travel insurance products. Before making a purchase, you should read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) to ensure the policy meets your specific travel needs.