Is health insurance hereditary?

Richard Laycock 23 October 2017 NEWS

Mother and daughter following an online recipe on a tablet

Kids follow in their parents' footprints when it comes to health cover.

Aussie consumers might not be getting the health cover that's best for them as more than one quarter (28%) of us just go with the same fund as our parents.

The research conducted by found that women were more likely than men to be influenced by their parents' choice of health insurer, with 30% initially choosing the same health fund as their folks, while 25% of men took out cover with the same fund as their parents.

Worse still, only one-third of those who took out cover with the same fund as their parents had ditched their cover or switched to a new fund since getting private health insurance.

This supports previous research from, which found that the average Australian private health insurance policyholder stayed with their health fund for 11.8 years.

Generation Y were the least loyal of the group, choosing a new fund on average every six years.

The government's announced reforms have delivered some good news for young Australians wanting to get private health insurance.

Those under the age of 29 will be able to score themselves a discount of 2% for each year they hold hospital cover (up to a maximum of 10%).

This discount will remain in place until you're 40 and the discount scheme comes into effect from 1 April 2019.

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