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The Australian government encourages people to subscribe to private insurance policies. They are tax rebatable. Check very carefully what benefits are gained as sometimes being on the normal regime can be good enough (depending on your state of health).

There are two main types of private health insurance cover available - hospital cover and ancillary cover. Ancillary cover provides benefits for services such as physiotherapy and dental and optical treatment.

Under Medicare you can be treated as a public patient in a public hospital at no charge by a doctor appointed by the hospital. When you have private health insurance (hospital cover) this gives you cover (often called fund benefits) towards the cost of treatment as a private patient in a public or private hospital.

For more information go to:
http://www.health.gov.au/pubs/circfinl/hot/facts.htm