Health insurance can be a tricky beast. Whether you’re thinking about starting a family, crossing those pesky tax thresholds or just wanting the best level of health care possible, it can be puzzling to figure out.
At finder.com.au, we aim to clear up the confusion so that you can find a policy that suits your needs and budget. You can get a quote and compare policies from over 30 companies here in Australia and be well on your way to knocking one more thing off your to-do list. Our services are 100% free and we don’t mark up prices or ask for your phone number.
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Health insurance is a financial product that helps you cover the cost of your hospital treatments as well as some out-of-hospital services. These two services are broken into two groups: hospital treatments and general treatments (also known as ancillary services or extras).
While we're lucky as Australians to have access to hospital treatment through our public healthcare system Medicare, private health insurance provides you with more options.
| Medicare | Private health insurance |
|---|
| Public hospital services | | |
| Ambulance | | |
| Private room or hospital | | |
| Everyday health (dentist, physio, etc) | | |
You have 5 options
When you're looking for private health insurance, it's up to you to decide whether you want hospital or extras or a package with both. You also have the option of taking out a standalone ambulance policy, but ambulance cover is generally included in most extras policies.
Option 1: Hospital cover
A hospital policy covers you for hospital procedures and accommodation, letting you choose your doctor and access a private room when available. A hospital policy is also what you need to avoid the Medicare Levy Surcharge (MLS).
Health insurance hospital cover
Option 2: Extras cover
Also known as general or ancillary cover, extras cover allows you to claim for out-of-hospital health services such as dental, physio and even ambulance. You can choose a plan that pays either a set benefit refund or a percentage of the total cost of your service.
Health insurance extras cover
Option 3: Hospital and extras combined
Get a comprehensive level of protection with a combined policy that includes cover for hospital and extras services. These policies are typically designed to suit certain groups or lifestyles such as families, young couples or singles.
Health insurance hospital and extras cover
Option 4: Overseas Visitor Health Cover (OVHC)
If you're looking to visit, work or study in Australia, you may need OVHC. Whether you're looking for a basic policy that just ticks the necessary boxes or a comprehensive policy that gives you the best health care during your stay, there are several options available.
Compare OVHC
Option 5: No health insurance
Sometimes it just doesn’t feel worthwhile for you to take out private health insurance when Medicare is free. You can take this 1-minute quiz to help you figure out whether you would benefit from hospital cover, extras cover, both or neither.
Take the quiz
The cost of health insurance, unlike other insurance products, really comes down to the choices you make. A basic hospital policy can start from $16 a week and an extras policy from just $3 a week with April 2018 pricing.
You can also easily compare hundreds of policies to find either a cheap or comprehensive policy that works for your budget.
Private health insurance is community rated meaning that no matter how old you are or whether you have any pre-existing conditions, everyone pays the same amount for the same cover. However, there are ways that you can save a few dollars:
- Prepay for your policy before 1 April each year. Every year on 1 April, health insurance premiums go up to keep in line with inflation, the rising costs of health care and other factors. If you prepay 12 months' worth of premiums before 1 April, you can postpone the rate rise's effect on your hip pocket.
- Annual payment discounts. If you're planning on paying for your policy in advance for the next year, look for a fund that offers discounts for doing so. Some of these funds offer discounts of up to 4%.
- Direct debit discounts. While we're on the topic of payment discounts, some funds offer a 4% discount for customers who pay for their premiums by direct debit.
- Health discounts. Some funds, such as myOwn, are dipping their toes in the water and starting to reward their healthier members with discounted premiums.
Start comparing health insurance
The Australian Government has introduced a number of schemes to encourage people who can afford private health care to take it out. Private health care takes the burden off the public health system so that people who really need it can access it when they need to. There are therefore a few schemes that may impact you if you don't have private health insurance.
- Lifetime Health Cover (LHC) loading. This is designed to encourage Australians to maintain health insurance from a younger age. It does this by increasing premiums by 2% for every year after your 31st birthday that you don't have cover.
- Medicare Levy Surcharge (MLS). This is an additional tax penalty ranging from 1% to 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.
Health insurance in Australia is changing. For more details on the upcoming healthcare reforms and what they mean for you, check out our detailed analysis or watch the 2-minute video below.
Have peace of mind, whether you want choice over your hospital or your surgeon, or you just want to feel safe in the knowledge that you’ve got protection.
Just want a basic policy that means you don’t get penalised? We got you. Health insurance means you can avoid fearing that claim form come June 30.
Don’t want to sit on a public waiting list for surgery? Private health insurance can help. You’ll be able to receive treatment quicker, in a private room and from a doctor that you choose.
If you get regular massages, physio treatments or you just like keeping your teeth in great condition, these out-of-hospital treatments are only covered by private health insurance.
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
With premiums that keep increasing, I am now paying around $94 a month ($1128 per year) on something that I have never actually used over the last 6 years!
What is the actual consequence if I walked out of heath insurance (don’t mention hypothetical scenarios such as me getting into an accident)?
How much am I actually penalized on my tax?
Hello Shaun,
Thank you for your question.
If you would decide not to take on private health insurance, please be ready to face out-of-pocket costs if you do get hospitalised or need medical care and services. Out-of-pocket costs will vary greatly depending on the hospital you go to and the doctor or specialist they see.
As per being penalised for not taking out health insurance, yes would. Another reason Australians commonly take out private health insurance is to avoid financial penalties. Australia’s tax system encourages high-income earners to take out private health insurance as well as paying the 2% levy to help fund Medicare and the National Disability Insurance Scheme.
If you do not take out private health insurance, you will pay a 2% tax penalty called the Medicare Levy Surcharge.
Hope this helped.
Cheers,
Gru
I am 76 years old. What do I need to cover with private health insurancé that I am not covered for as a pensioner? Thank you.
Hi Aleisha,
Thanks for reaching out.
Medicare does not provide cover for the following:
– most dental examinations and treatment,
– most physiotherapy, occupational therapy, speech therapy, eye therapy, chiropractic services, podiatry or psychology services,
– acupuncture (unless part of a doctor’s consultation),
– glasses and contact lenses,
– hearing aids and other appliances
You may, however, arrange private health insurance to cover many of these services. You may compare health insurance for seniors over 70 on this page. Please make sure to click the “More Options” button to select the correct age range, before clicking the “Search Policies”.
I hope this has helped.
Cheers,
Liezl
I want to find a better cover at a better price than what I already have.
Hi Anita,
Thanks for reaching out. You can definitely do that by using our policy search engine above. Simply enter your details and type of cover you want. Once you click the “Search Policies” quotations from different brands will be generated. You may then click the “Go to Site” button to get the quote and for more details.
Cheers,
Liezl
Hi, just want to check our current policy with other providers to ensure we are adequately covered and what we currently require.
Hello Dionne!
Thanks for the question! You are actually on the right page! :)
Scroll a bit below, you would see different health insurance available in finder, such as health funds, EoFY deals, hospital and extra covers, and overseas. You may select which one is applicable for you.
Once redirected to another page, use our form and click “Search Policies” orange button.
If you need further help on this matter, you can talk to an insurance advisor or financial adviser.
Hope this helps.
Cheers,
Jonathan
I’m 30 years old, and want to check I can wait until June FOLLOWING my 31st birthday to take out hospital cover and avoid the Lifetime Health cover loading? I was told that I needed to take it out in June BEFORE my 31st birthday, so just want to check this. Thank you :)
Hi Frances,
Thank you for your inquiry.
For you to avoid paying 2% loading on your insurance premium for every year you are aged over 30, you are highly encouraged to have a hospital cover on what is known as your Lifetime Health Cover Base Day 1 July following your 31st birthday. Please refer to this page for more details on how Lifetime Health Cover (LHC) works.
Cheers,
May
My parents are paying $932.00 for quarter policy for private insurance. Are receiving pension payment. What is best deal and live in South Australia
Hi Anthony,
Thank you for your question. Please note finder.com.au is a comparison and information service and we are not permitted to provide our users with personalised financial advice or product recommendations.
If you would like to compare policies from Australian health funds, please enter your details into quote comparison tool on the top of this page.
Once you have done so you will be able to review quotes from 30+ health funds and sort these quotes by price or by the value of the policy. While we are able to provide quotes for 30+ health funds, you will only be able to apply for cover with the funds in our panel.
Cheers,
Zubair
do you travel insurance for over 70
Hi Margaret,
Thank you for your question.
finder.com.au is a comparison and information service and not an insurer.
Most of the travel insurance brands in our panel offer cover for over 70s, in order to compare the policies, please enter your travel details like destination, age and dates of the trip into the quote comparison tool.
All the best,
Zubair
How can I compare here?