Subclass 457 – Health Insurance Frequently Asked Questions – Sponsors

When do the changes to health insurance requirements come into effect?

The Migration Legislation Amendment (Worker Protection) Act 2008 comes into effect on 14 September 2009. It applies in relation to all Subclass 457 visas granted on or after 14 September 2009.

For sponsors of Subclass 457 visa holders whose visa was granted prior to 14 September 2009, the sponsor retains ultimate responsibility for the cost of treatment in a public hospital. Sponsors who fail to meet the relevant costs may be subject to administrative sanctions.

I currently employ a Subclass 457 visa holder whose visa was granted before 14 September 2009. Do I still need to provide for their health cover?

Yes, for Subclass 457 visa holders whose visas were granted prior to 14 September 2009, sponsors retain ultimate responsibility for the cost of treatment administered in a public hospital for the validity of the visa. Additionally, if you take on new workers that already have a subclass 457 visa that was granted prior to 14 September 2009, the responsibility for the cost of treatment administered in a public hospital for those workers and their dependants transfers to you.

Sponsors who fail to meet the relevant costs may be subject to administrative sanctions.

I currently pay health insurance for my Subclass 457 visa holders. Can I still do this?

Yes. This can be done with agreement with your 457 visa holders.

What happens if my employees that have to provide their own health insurance do not maintain it?

All visas granted on or after the 14 September 2009 are subject to Condition 8501 requiring visa holders to maintain adequate arrangements for health insurance for the duration of their stay in Australia. Departmental officers will use information provided by health insurers to monitor compliance with Condition 8501 and visa holders who fail to comply may have their visas cancelled.

What are reciprocal health care agreements (RHCA)?

Reciprocal health care agreements (RHCA) are agreements between the Australian Government and other governments to cover some medically necessary treatments for ill-health or injury which occurs while you are in Australia and requires treatment before you return home.

The Australian Government has RHCA with the governments of the United Kingdom, Sweden, the Netherlands, Finland, Norway, Malta, Italy, Belgium, the Republic of Ireland and New Zealand. New RHCA may be negotiated at any time.

For the latest list of countries and further information on RHCA, including what Medicare services are available under RHCA, you should refer to the Medicare Australia website.
See: Medicare Australia – Visitors to Australia

Which health insurance companies can provide the adequate cover?

There are a range of products available for 457 visa holders. While all suitable products will cover at least the minimum requirements, level of cover provided in addition will vary among providers from policy to policy. The department does not recommend a particular product. Further information about private health insurers in Australia can be found on the Australian Government website.
See: www.privatehealth.gov.au/ovos