Gee that certainly couldn't have tried any harder to word that in a more difficult fashion now could they?

I think what they are trying to say is that they will pay 100% of the scheduled fee in a hospital that is in agreement with Australian Unity - remembering that the hospital most likely will charge over the scheduled fee, which means you may be out of pocket. So you probably need to take this into account when choosing your hospital. I would ask Australian Unity to confirm with you whether the hospital you wish to use is part of the agreement, or if they could provide you with a list of hospitals covered under the agreement. Then I would check with the hospital what the costs are so that you can try and work out what you would be up for (i.e. the out of pocket expenses).

WRT baby - the baby is not normally admitted to hospital when they are born. It is you that is admitted. If your baby falls ill and requires treatment, then they will be admitted to the hospital. So what they are saying is that if your baby is seen by a Paedeatrician, then they will not cover that cost because the baby is an outpatient, but you can take the bill to Medicare and claim some back through there. But if the baby is admitted to hospital, then you pay an additional excess, but you would then be covered by Australian Unity for the costs of Paed as the baby is an inpatient.

I think this is what they're saying! LOL