What OSHC Doesn’t Cover in Australia? Avoid These Costly Gaps!

• byBudgetpolicy
• 2025-10-10

If you’re an international student in Australia, buying Overseas Student Health Cover (OSHC) isn’t optional — it’s mandatory for your student visa. But here’s the catch: not all OSHC plans provide complete coverage. Many students find this out only after they get a medical bill they thought their insurance would pay. Let’s make sure that’s not you.

This guide breaks down what OSHC Australia usually doesn’t cover, why those gaps exist, and how to compare top providers like AHM OSHC, Allianz Care, NIB OSHC, Medibank, and Bupa before buying a plan.

Let’s start with a quick overview of OSHC.

What OSHC Actually Covers

OSHC helps international students pay for essential medical treatment while studying in Australia. The cover usually includes:

• Doctor (GP) visits
• Some specialist consultations
• Shared-room hospital stays and surgery
• Emergency ambulance transport
• Limited prescription medicine costs

It’s meant to make your basic healthcare affordable — not to act as full coverage for every medical cost.

The Gaps Students Don’t Notice Until It’s Too Late

Now let’s talk about what Overseas Student Health Cover doesn’t cover — the part that surprises most students.

Dental, Optical, and Physio Treatments: Toothache? Eye check? Sprained ankle? Sorry, your basic OSHC doesn’t cover that.

If you need dental cleaning, fillings, new glasses, or physiotherapy, you’ll have to pay out of pocket or buy an ‘extras’ policy from your provider.

Some students assume their OSHC covers all doctor visits — but if your visit isn’t related to a hospital or GP-type service, it’s probably excluded.

Non-PBS or Expensive Medicines: Every OSHC policy covers medicines listed under the Pharmaceutical Benefits Scheme (PBS), but only up to a limit — usually around AUD 50 per script.

If your medicine isn’t on the PBS or costs more, you’ll pay the difference. That might not sound huge, but if you’re on long-term medication, it adds up fast.

Pregnancy-Related Costs: Planning to start a family in Australia? Most OSHC plans require you to serve a 12-month waiting period before availing any pregnancy service. That means if you fall pregnant within your first year in Australia, hospital and obstetrician costs may not be covered.

So, emergency care costs, including routine prenatal or delivery, come out of your own pocket.

Elective or Cosmetic Procedures: OSHC is strictly for medically necessary treatment. So if you’re thinking about laser eye surgery, skin treatments, or cosmetic dental work — that’s on you.

Even medically related cosmetic surgeries, like scar revision, usually need strong documentation before being considered.

Ambulance and Hospital Gaps: Yes, most policies include ambulance transport and hospital coverage. But 'coverage' doesn’t always mean full coverage.

If you’re treated in a private hospital that charges above the Medicare Benefits Schedule (MBS) fee, you’ll have to pay the gap. That’s the difference between what your OSHC reimburses and what the hospital charges.

So even if you’re insured, you could still get a bill of a few hundred dollars after treatment.

Why These Gaps Exist

OSHC is designed as basic health cover, just enough for visa compliance and essential treatment. It is a safety net, not a luxury plan. It’s supposed to make sure international students can get treated in an emergency or when they fall ill, not to replace full private health insurance.

How to Avoid Paying for What’s Not Covered

Here’s how smart students stay one step ahead:

Compare OSHC Providers Carefully: Don’t just buy the first OSHC quote you see. Use Budget Policy to compare OSHC. Check plans from Bupa OSHC, NIB OSHC, Allianz Care, AHM OSHC, and Medibank.

Check Waiting Periods: Most plans require you to serve a 2-month waiting period for pre-existing conditions and a 12-month waiting for pregnancy or psychiatric treatment.

Consider Adding Extras Cover: If you know you’ll need dental or optical care, it’s often cheaper to buy combined OSHC + extras rather than paying out-of-pocket every time.

Keep All Your Receipts: For any service you pay out of pocket, you can still claim partial refunds if eligible. Don’t throw away invoices or prescriptions.

Read the Policy Brochure Carefully: Sounds boring, but that’s where you’ll get the details on waiting periods, pharmacy limits, and exclusions.

OSHC Comparison: Top Providers and What They Offer

Bupa : Extensive hospital network and reliable support for international students.
AHM : Straightforward pricing, easy claims, and simple plan options.
NIB : Competitive pricing and flexible online management.
Medibank : Strong reputation and wide partner hospital coverage.
Allianz Care : Fast online services, easy claim process, and solid support network for international students across Australia.

When comparing, don’t just focus on finding the cheapest OSHC — look at what’s included. A plan that saves you $30 a year but leaves you uncovered for major costs isn’t really saving you money.

The Bottom Line

OSHC keeps you safe from unexpected medical costs — but only if you understand what it does and doesn’t cover. To buy the right plan for yourself, you need to understand that no plan eliminates gaps completely; it just reduces them. Therefore, you need to read through the brochures and find a good fit — the one that covers all or most of your needs. Comparing policies on Budget Policy will simplify the process and save you time.

Before you apply for your student visa, check exclusions and get an accurate OSHC quote on Budget Policy. It’s the best way to avoid unpleasant surprises later and focus on what you actually came for — studying and building your future in Australia.