Hollybolly has explained well! Just another thing to remember, keep all your receipts. As with out of pocket expenses you may be able to claim through tax. As in when you hit the $1500 out of pocket threshold (medical) for ATO you can get back 20c in the dollar? after that $1500 threshold. So keep all receipts and remember to request Tax statements from Medicare, your private health fund, Pharmacy (scripts).

HTH