Time to read : 3 Minutes
R U OK – actually, no, we aren't, mentally or financially
The Money and Mental Health Social Research Report from Beyond Blue proves something we've always felt was true – if you are struggling financially you are twice as likely to suffer from mental health issues.
Beyond Blue's CEO Georgie Harman says,
"Financial wellbeing and mental health are influenced by social inequality, financial literacy, relationships, shame and stigma about both money and mental health, work-status, physical and psychological health, and financial and mental health literacy."
* Trigger warning: the rest of this article talks in depth on mental health conditions*
Mental health in Australia: what you need to know
Australia is experiencing a mental health crisis – let this sink in, one in four Australians (aged 16-24) in the last two years thought about suicide, 15% of them self-harmed.
The Australian Bureau of Statistics (ABS) 2022 report found that one in five of us suffered a mental health episode during the lockdown.
That figure includes 3.3 million Australians who suffered from anxiety.
According to Lifeline 8.6 people commit suicide each day. People in rural locations are twice as likely to die by suicide.
The cost of a 50 minute appointment with a clinical psychologist could set you back $267. The Medicare rebate is just $129.55 for each session, a gap of $137.45.
Unlike the 12 month waiting period on private health for hospital cover, psychiatric treatment requires a two month waiting period.
20 Pop-up mental health care clinics are being funded by the Victorian Government to help those struggling in the wake of the world's longest lockdown.
Going deeper: who's most affected
The report also confirms that people face a range of health impacts from financial stress, including suicidal thoughts.
Young adults, Indigenous Australians, women and small business owners were more likely to experience poor mental health from financial stress.
Over time, the negative impacts of financial and mental health can lead into a downwards and worsening spiral.
The impacts of multiple community crisis events such as Covid, fires, flooding, and the cost of living all pile up on top of each other creating even more stress.
The recent Taking the Pulse of the Nation (TTPN) shows that despite low unemployment rates, those who lost their jobs during the pandemic are struggling both mentally and financially.
So, can the cost of mental health be helped by health insurance?
The short answer is yes: psychology is covered on extras while you'll need the appropriate level of hospital cover to claim on psychiatric treatment in hospital.
➡️ You can read our full guide to the ins and outs of mental health and health insurance here.
Be aware: Psychology extras with a decent rebate on treatment are more likely to be found in mid or top level extras policies. That can put it out of reach for some people, especially younger Australians.
Compare Club's Senior Sales Advisor Eli Boroda has already noticed this trend:
"Under 30s who enquire with Compare Club are 155% more likely than any other age group to ask for psychology with their extras, but they'll often end up taking out a lower level of cover that doesn't include this treatment."
There's a lot of variance between funds in terms of cost and the amount you can receive back in extras that include psychology.
Bupa and Medibank's lowest levels of extras are between $778 - $810 without hospital cover*. Their annual limits for psychology and amount you can claim back after a counselling session is differs.
Medicare can cover some of the costs of psychology treatment – including appointments, mental health plans and social workers.
But... you'll need to get a referral from your GP and that can also cost if they don't bulk bill.
Be aware: there can be a long wait for mental health treatment at public hospitals.
There is help for both health and finances
As Beyond Blue says, you are "not alone."
With a referral from your GP you can get a Mental Health Care Plan (for people who have been diagnosed with a mental health disorder).
You can claim up to 20 sessions through Medicare – with the maximum of six referrals a time, although check in advance for any charges from your GP for additional referrals.
If you live remotely, you can claim for the same benefit (with a GP referral) through telehealth video appointments.
Carer payments are also available to you if you are the full-time carer for someone with a mental health condition.
Be aware: When paying for treatment you can't combine rebates from both Medicare and your private health insurance.
Bottom line
Your mental health is closely linked to your financial wellbeing. Times are tough right now and the research confirms we are all feeling it.
But there are plenty of resources who can help, from the likes of Beyond Blue to your GP and, yes, your health fund. Some even offer extra support programmes for members.
Financially, there's also plenty of support from debt counsellors through to the practical analysis on this site for people who are starting to feel the pinch. My colleagues at Compare Club wouldn't ever claim to have all the answers but they are very good at helping people bring down a few of their more expensive bills.
Finally, if you're feeling stressed, helpless or anxious, reach out for help, whether that's friends and family, your GP and support services. Here's a few useful numbers if you need to speak to somebody. Help is out there!
National Debt Line: 1800 007 007.
Life Line: 13 11 14.
Suicide Call Back Service: 1300 659 467.
HeadSpace: 1800 650 890.
A cause worth supporting...
R U OK Day is on September 8, you can support this great cause by hosting an event, fundraising or just by asking your friends (and you) if you are okay.
The information contained on this web page is of general nature only and has been prepared without taking into consideration your objectives, needs and financial situation. You should check with a financial professional before making any decisions.
*correct as of 01/09/2022
