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When a 457 Visa Holder receives permanent residency they no longer need to have health insurance 457 visa, but they may receive penalties if they choose to cancel it.
One of those penalties as discussed earlier is the ‘Medicare Levy Surcharge’ while another is called ‘Lifetime Health Cover’.
This surcharge ranges between 1% to 1.5% based of an overseas visitor’s income and is avoidable if overseas visitor health cover is held.
This provides passport holders from these countries with cover for some medically necessary treatments for ill-health or injury during their stay in Australia.The Department For Immigration and Border Patrol states that “it is compulsory for a 457 visa applicant to make plans for health insurance for themselves and accompanying family members”.Condition 8501 states that these visa holders (family members included) must also maintain their health insurance cover during their stay within Australia.When you have 457 visa health cover and make a medical claim (for example, after visiting a doctor) you will normally be paid the Medicare Benefit Schedule (MBS).This is the amount that a permanent Australian resident would receive if they were in the public system.
This cover also rules out private hospital stays, which can significantly increase the costs of claims from working visa holder.