Health Insurance Finder™ is a 100% free, Australian-owned comparison service designed to help you find suitable cover for your needs.
Private health insurance helps you cover the cost of hospital treatments as well as some out-of-hospital services, such as benefits for dental. When comparing your health insurance, you can pick hospital, extras cover or a combined policy with both. The treatments you're covered for will vary based on the price you pay.
How much does private health insurance cost?
That depends on the level of cover you have. Most health funds in Australia offer a low, medium and high level of cover for both hospital and extras health insurance. You'll often see these labelled as Gold, Silver, Bronze or Basic.
We've crunched the averages below from over 10 Australian health funds to give you an idea of what you can expect to pay. Prices quoted are based on a single policy in Sydney, earning less than $90,000 with a $500 hospital excess from April 2019.
It can be tricky to compare apples for apples with health insurance. Whether you're switching or looking for the first time, here are a few tips that may help. They may even save you some money.
See how much you're paying. Get a starting point of what you're paying now. If you're on a couples policy, see if you both need to be on the same level of cover or if you'd be better off looking at two singles policies (if one of you is pregnant or planning to be, for example).
Look at your hospital and extras separately. It's easy to just go for a combined package, but by reviewing your hospital separately you can mix and match your level of cover. You can also choose different funds.
Explore all options. There are over 30 health funds in Australia, don't just stick on the same policy as your parents or friends. It's a regulated industry so you can feel safe exploring your options.
See what you're actually paying for. Review your extras limits and make sure you claim them every year. Drop the things you're not using.
Switch and use deals. There are no real downsides to switching fund, you can carry over your waiting periods and save a heap by changing frequently. Use sign-up deals every time you switch.
4 benefits of health insurance
Choose your hospital.
No need to travel miles out of the way. With private health insurance, choose the hospital that suits you best.
Skip waiting lists.
Nobody likes waiting around. Private health insurance allows you to skip the public waiting queue.
Save on tax.
If you're earning more than $90,000, you can actually save money by taking out private health insurance.
Peace of mind.
Rest easy knowing that health insurance has you covered, should anything go wrong.
Compare types of private health insurance
It's up to you to decide what type of private health insurance you'd like cover for. Here's how many Australians have health insurance in 2019.
Hospital only
This covers private hospital procedures, performed by a private surgeon. It's also what you need to avoid the Medicare Levy Surcharge (MLS).
Extras cover will give you rebates for treatments you have outside of the hospital. For example, visiting the dentist or getting a new pair of prescription glasses.
Not sure if private health insurance is worth it? Here are some key differences between the public and private healthcare system in Australia:
Public system
Private health insurance
Doctor
A public hospital will allocate a doctor for you. You don't get to choose.
You can choose which doctor you see.
Private room
You'll likely end up in a shared room in a public hospital.
Insurance gives you access to a private room if there's one available.
Waiting lists
Waiting lists for elective treatments can range from a few weeks to a few years.
Private insurance usually involves a shorter wait. For some procedures, you may even be able to pick your date.
Treatment types
Medicare doesn't cover most dental, hearing aids or other out-of-hospital treatments.
Extras can give you cashback on out-of-hospital services such as optical, dental, psychology and hearing aids.
Ambulance costs
In most cases, Medicare won't pay for your ambulance except in Queensland and Tasmania.
Most health funds include cover for an emergency ambulance, even on Basic policies.
What impacts the cost of health insurance?
Health insurance is community rated which means you don't have to pay more for pre-existing conditions and the price you pay isn't impacted by your age.
However, here are a few things that can impact your quote:
Lifetime Health Cover (LHC) loading. If you haven't taken out private health cover by the time you turn 31, you'll have to pay 2% extra for each year you were uninsured when you do eventually take it out.
Medicare Levy Surcharge (MLS). This is an additional tax penalty ranging from 1–1.5% of your annual income, depending on how much you earn, and is applied every year that you do not have an adequate private health insurance policy.
Private health insurance rebate. One of the major benefits of having private health insurance is being able to claim the private health insurance rebate. The rebate is determined by your age, your relationship status and your income.
Your excess or co-payment. When you take out insurance, you can agree to take some responsibility for the health cover costs in return for lower premiums – this is your excess. You only pay it if you go to the hospital. The higher your excess, the lower your premiums will be.
Your location. If you live in a regional area of Australia, your insurance might cost you more due to poorer access to health facilities as well as potential travel and accommodation expenses.
Not an Australian resident? Here's what you need to know.
Without health insurance, you could end up facing huge medical bills should you need the hospital during your stay. The type of cover you need will depend on your visa. However, people from countries that Australia has a Reciprocal Health Care Agreement with can access some treatment from Medicare.
There are just over 13.5 million Australians with private health insurance. That's over half (54%) of the country's population.
Thanks to the most recent PHI reforms, which have introduced Basic, Bronze, Silver and Gold tier policies, finding cover for a specific service is easier than ever. Every tier is required to provide cover for specific services so you can check out what is included in each and select the one that covers the treatment you require.
Compare your options in our guides designed for specific treatments:
If you cancel your health insurance, you won't be entitled to the services you would have otherwise had access to. This means you would have to pay out of your own pocket for a trip to the hospital.
You often won't have to re-serve waiting periods if you had similar or equivalent cover with another provider. However, if you're upgrading or didn't previously have cover for a service that your new policy includes, you will probably have to serve a waiting period.
The Medicare Levy Surcharge (MLS) is a rebate based on your and your family's income and any dependants. Depending on your income, you may be entitled to a private health insurance offset at tax time or reduced insurance premiums.
Gary Hunter is a writer at Finder, specialising in insurance. He has a Bachelor of Arts in English Literature from the University of Glasgow and has previously worked for Real Insurance as a content specialist.
Want to get health cover for grommets? Find out how private health insurance and Medicare costs compare and what you’ll be covered for. Choose the option that suits you best.
The 190 Visa gives you permanent residency and can lead to citizenship. Read our easy, step-by-step guide on how to apply and what health cover you will need to have in place.
Need health cover for gastroscopy? Find out how private health insurance and Medicare cover treatment and compare the costs for the most affordable option.
Does your visa require health cover? Check out Australian Unity’s 6 OVHC options for working and holiday visas to see if they have a policy that’s right for you.
Thanks for getting in touch with Finder. I hope all is well with you. 😃
That’s an interesting question, Maria.
In most cases, elective cosmetic procedures are not covered by health insurance policies. However, reconstructive plastic surgery is more likely to be covered.
We do have a guide about health insurance covering cosmetic surgery. Please check this page. On that page, you will know which health funds cover medically necessary plastic surgery.
However, if you are after health insurance that covers elective surgery, your options might be limited. You may still want to fill out the form found on this page to get in contact with health insurers. From there, you can ask them directly whether they cover elective cosmetic surgeries or not.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
You can look for a combined limit on many extras, as an example, AHM just give you one year limit to use. If you use the comparison above, you can see an individual breakdown of every funds policy limits – hope this helps!
Thanks for getting in touch! Here is our page that talks about health insurance for major eye surgery. Hope this was helpful. Don’t hesitate to message us back if you have more questions.
Yes – it’s only top-level hospital cover (Gold or the occasional Silver Plus) that include pregnancy in the policy, by comparing Silver policies, or below – these won’t include pregnancy.
How to combine two existing top (premium) health cover policies from adult single to a couples when both are with separate insurers? Wish to compare which of these two insurers would best cover the two of us as a couple whilst neither one loses benefits or has a waiting period. We both have been with our respective health providers for over ten years continuously.
If you’re currently on separate policies, the first step would be to see if you can save any cash by combining your policies – we’ve added a bit of info on that here https://www.finder.com.au/health-insurance/couples – it doesn’t always work out cheaper and it’s probably worth a closer look.
With your waiting periods, they are different for hospital cover and general treatment (extras) cover. All of your hospital waiting periods that you’ve already served travel with you to the new policy – so if you do decide to combine your policies, you should be covered.
Keep in mind, you’ll still have to serve waiting periods for any new benefits that you didn’t have before (such as pregnancy cover and also extras).
If you already have a preferred health fund from your two options – it may be worth giving them a call as they can move you onto one package.
I hope this helps. Please feel free to reach out to us if you have any other enquiries.
Hi there. My wife is already pregnant and the pregnancy insurance waiting period is 12 months!! So how does PHI work to cover her when she is giving birth? What is the solution around this?
To be qualified for the private health insurance you’re advised to take out the policy in advance before attempting to conceive. Most Australian private health funds have a 12 month waiting period for obstetric services.
I am afraid that no PHI will consider your wife’s condition as she is already pregnant, however, you can still contact the insurer directly and see what options they can offer you. I hope this helps.
How does Defence Health compare to other health funds in terms of value for money – cost of premium to rebate received. The mo they premium certainly appears a lot higher than other funds but do the rebates reflect that?
Defence Health offers a range of health insurance options to more than 235,000 Australians with Defence connections. With hospital and extras cover to suit everyone from the young and healthy to those who need comprehensive protection, it provides affordable cover and peace of mind.
You may want to know more by clicking on this link.
Quoted premiums are before government rebates. Rebate rates are subject to change based on the cost of living and the average health insurance premium amount. It would be helpful to check with your health insurance provider on their ongoing rates as well.
Thanks for your inquiry. Restricted health funds are funds where membership is restricted to certain people. They are usually operated by industry or employment groups and are not-for-profit, being run solely for the benefit of their members. You can know more information on this page.
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Important information about this website
finder.com.au is one of Australia's leading comparison websites. We compare from a wide set of major banks, insurers and product issuers.
finder.com.au has access to track details from the product issuers listed on our sites. Although we provide information on the products offered by a wide range of issuers, we don't cover every available product. You should consider whether the products featured on our site are appropriate for your needs and seek independent advice if you have any questions.
Products marked as 'Promoted' or "Advertisement" are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options and find the best option for you.
The identification of a group of products, as 'Top' or 'Best' is a reflection of user preferences based on current website data. On a regular basis, analytics drive the creation of a list of popular products. Where these products are grouped, they appear in no particular order.
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We try to take an open and transparent approach and provide a broad based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labelling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
Providing or obtaining an estimated insurance quote through us does not guarantee you can get the insurance. Acceptance by insurance companies is based on things like occupation, health and lifestyle. By providing you with the ability to apply for a credit card or loan we are not guaranteeing that your application will be approved. Your application for credit products is subject to the Provider's terms and conditions as well as their application and lending criteria.
Please read our website terms of use for more information about our services and our approach to privacy.
Is there any available private insurance package that covers beauty and plastic surgeries? What package is the most applicable for those procedures?
Hi Maria,
Thanks for getting in touch with Finder. I hope all is well with you. 😃
That’s an interesting question, Maria.
In most cases, elective cosmetic procedures are not covered by health insurance policies. However, reconstructive plastic surgery is more likely to be covered.
We do have a guide about health insurance covering cosmetic surgery. Please check this page. On that page, you will know which health funds cover medically necessary plastic surgery.
However, if you are after health insurance that covers elective surgery, your options might be limited. You may still want to fill out the form found on this page to get in contact with health insurers. From there, you can ask them directly whether they cover elective cosmetic surgeries or not.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua
Hi there , is there a health fund which allows me to use my total benefit where ever i like to spend ,instead of their own set breakdown ?
Hi Surinder,
You can look for a combined limit on many extras, as an example, AHM just give you one year limit to use. If you use the comparison above, you can see an individual breakdown of every funds policy limits – hope this helps!
Cheers,
Reggie
Do any funds cover the cost of Intraocular Lenses to cure Cataracts please?
Hi David,
Thanks for getting in touch! Here is our page that talks about health insurance for major eye surgery. Hope this was helpful. Don’t hesitate to message us back if you have more questions.
Best,
Nikki
Please give me health funds which have a policy for NO pregnancy or infertility cover.
Hi Pauline,
Thank you for reaching out to finder.
Yes – it’s only top-level hospital cover (Gold or the occasional Silver Plus) that include pregnancy in the policy, by comparing Silver policies, or below – these won’t include pregnancy.
Cheers,
Reggie
How to combine two existing top (premium) health cover policies from adult single to a couples when both are with separate insurers? Wish to compare which of these two insurers would best cover the two of us as a couple whilst neither one loses benefits or has a waiting period. We both have been with our respective health providers for over ten years continuously.
Hi Nikko,
Thank you for getting in touch.
If you’re currently on separate policies, the first step would be to see if you can save any cash by combining your policies – we’ve added a bit of info on that here https://www.finder.com.au/health-insurance/couples – it doesn’t always work out cheaper and it’s probably worth a closer look.
With your waiting periods, they are different for hospital cover and general treatment (extras) cover. All of your hospital waiting periods that you’ve already served travel with you to the new policy – so if you do decide to combine your policies, you should be covered.
Keep in mind, you’ll still have to serve waiting periods for any new benefits that you didn’t have before (such as pregnancy cover and also extras).
If you already have a preferred health fund from your two options – it may be worth giving them a call as they can move you onto one package.
I hope this helps. Please feel free to reach out to us if you have any other enquiries.
Thank you and have a wonderful day!
Cheers,
Jeni
As a couple over 50 we would like private hospital cover with general dental, optical, physio and chiro.. what is the best option?
Hi Susan,
Thanks for getting in touch with finder.
You may view this page to check on health insurance for over 50s.
Hope this was helpful.
Cheers,
Nikki
Hi there. My wife is already pregnant and the pregnancy insurance waiting period is 12 months!! So how does PHI work to cover her when she is giving birth? What is the solution around this?
Hello Kevin,
Thank you for your comment.
To be qualified for the private health insurance you’re advised to take out the policy in advance before attempting to conceive. Most Australian private health funds have a 12 month waiting period for obstetric services.
This is explained on these pages:
– https://www.finder.com.au/health-insurance/pregnancy-health-insurance
– https://www.finder.com.au/health-insurance/waiting-periods
I am afraid that no PHI will consider your wife’s condition as she is already pregnant, however, you can still contact the insurer directly and see what options they can offer you. I hope this helps.
Regards,
Jhezelyn
How does Defence Health compare to other health funds in terms of value for money – cost of premium to rebate received. The mo they premium certainly appears a lot higher than other funds but do the rebates reflect that?
Hi Jo,
Thank you for getting in touch with finder.
Defence Health offers a range of health insurance options to more than 235,000 Australians with Defence connections. With hospital and extras cover to suit everyone from the young and healthy to those who need comprehensive protection, it provides affordable cover and peace of mind.
You may want to know more by clicking on this link.
I hope this helps.
Have a great day!
Cheers,
Jeni
Hi, are quoted premiums before or after any Govt rebates?
Hi Marco!
Thanks for your question and for visiting finder.
Quoted premiums are before government rebates. Rebate rates are subject to change based on the cost of living and the average health insurance premium amount. It would be helpful to check with your health insurance provider on their ongoing rates as well.
Hope this helps!
Thanks and best regards,
Nikki
What does the question “Do you qualify for a restricted fund?” mean.
Hi Steve,
Thanks for your inquiry. Restricted health funds are funds where membership is restricted to certain people. They are usually operated by industry or employment groups and are not-for-profit, being run solely for the benefit of their members. You can know more information on this page.
Best regards,
Rench