Cheapest health insurance in Australia October 2026

Cheap basic

HBF Health Limited - Basic Hospital Plus Elevate $750/$1500 Excess

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Cheap combined cover

Frank Health Insurance - Frank Basic Plus Hospital + Frank Bundables $500

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Cheap bronze

Frank Health Insurance - Frank Bronze Hospital

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Cheap extras cover

see-u by HBF - Starter Extras

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Cheap health insurance: top picks

Finding cheap health insurance shouldn't be complicated. That's why we've done the heavy lifting to source some of the cheapest policies in the country, analysing over 40 policies. Whether you're looking for the cheapest hospital cover or a cost-effective combined policy, we've got you covered.

• Cheap basic: HBF Health Limited - Basic Hospital Plus Elevate $750/$1500 Excess
• Cheap combined hospital and extras insurance: Frank Health Insurance - Frank Basic Plus Hospital + Frank Bundables $500
• Cheap bronze hospital insurance: Frank Health Insurance - Frank Bronze Hospital
• Cheap extras cover: see-u by HBF - Starter Extras

Cheap basic

HBF Health Limited - Basic Hospital Plus Elevate $750/$1500 Excess Basic$750 excess

Intro offer: Get 6 weeks free after your first month of hospital cover. For new members who join eligible hospital cover by 17 Nov 2026. T&Cs apply.

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Why we like it HBF Basic Hospital Plus Elevate is good if you want a cheap policy that gives you more for your money. it covers 15 treatments including dental surgery, gynaecology, hernia and appendix, joint reconstructions and tonsils, adenoids and grommets. That's 15 more than is required for a basic policy. You're also covered for accidents, ambulances and you get your own private room.

Cheap combined hospital and extras insurance

Frank Health Insurance - Frank Basic Plus Hospital + Frank Bundables $500 Basic$750 excess

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Why we like it This is one of the lowest-cost ways to get hospital and extras in one policy. The hospital side keeps the price down, covering you as a private patient in a private hospital if you seek treatment within 48 hours, while ticking the Medicare Levy Surcharge box for high earners. The Bundables side gives you one flexible $500 annual limit to spend across extras like dental, optical and physio with 50% back, plus any unused limits roll over after 12 months.

Cheap bronze hospital insurance

Frank Health Insurance - Frank Bronze Hospital Bronze$750 excess

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Why we like it Frank's Bronze Plus Hospital covers 22 of the 38 clinical categories at a budget-brand price, including high-value inclusions like back, neck and spine, dental surgery and lung and chest. It's backed by not-for-profit GMHBA and comes with a money-back cooling-off period if you change your mind before claiming.

Cheap extras cover

see-u by HBF - Starter Extras Extras cover

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Why we like it see-u Starter Extras is a great option if you're only interest in an extras policy, plus extra perks. It's one of the cheapest available.

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How much does health insurance cost?

The cost of private health insurance varies pretty wildly. You can find extras cover from just a few dollars a week, while basic hospital policies will cost you from around $18 per week. However, if you've got more complex health needs, you'll need to go up to a more expensive policy.

The price also rises every year. In 2026, the government-approved average premium increase is 4.41%, moderately higher than the previous year's average of 3.73%.

That's all very abstract - what are real Aussies paying for health insurance? Well, we ask hundreds of Australians that question every month in the Finder consumer sentiment tracker. Here's what their bill looked like in March 2026.

• Extras only: $89
• Basic Hospital: $145
• Bronze Hospital: $200
• Silver Hospital: $293
• Gold Hospital: $359

Price based on 1,700+ responses for single hospital or extras insurance.

Cheap health insurance for tax

One of the big reasons Aussies take out health insurance is to avoid the financial impact of not having it. The government tries to strong arm you into getting private cover in a couple of ways, but there are 2 big ones.

Medicare Levy Surcharge (MLS): This is an extra tax that you'll pay if you're a high earner that doesn't have hospital cover. For the 2026-27 financial year the income threshold is $105,000 for singles or $210,000 for couples or families. The actual tax is between 1% and 1.5% of your total income.

Lifetime Health Cover loading (LHC): This kicks in from the tax year you turn 31. For every year after age 30 that you don't have hospital cover, a 2% loading will be added to the cost of health insurance when you eventually get it. For example, if you wait until age 40 to get cover, you'll pay an extra 20% on the base cost. If you wait until 50, you'll pay an extra 40%!

Avoiding the MLS and LHC with cheap hospital cover

The good news is that you are exempt from both of these extra costs if you take out even a cheap hospital insurance policy. Even a basic or bronze policy is enough - just not extras only. I generally recommend at least a bronze tier policy because it covers way more treatments for just a little bit extra, but you can pick what works best for you.

When is cheap health insurance worth it?

Whether health insurance is worth it is going to be different for everyone. However, there are a couple of reasons you might take out cheap health insurance, where it's definitely still worth considering.

• To avoid tax impacts: We outlined these earlier in this article. Not having health insurance can make a big impact on your finances, but a cheap hospital policy can protect you.
• For basic extras cover: If you just want cover for basic extras like dental, optical and physiotherapy, a cheap extras plan is just the ticket.
• To cover some common treatments: If you don't reckon you need a super comprehensive policy, but you want private cover for some common treatments, you should at least have a look at some cheap bronze tier policies.

When is cheap health insurance not worth it?

Whether you're looking to avoid the MLS, you're about to turn 31 or simply keen to take out some basic cover, there are instances where cheap health insurance may not be worth the price tag, including:

• It's not the right fit (yet): If you earn under the $105,000 Medicare Levy Surcharge threshold and you're still under 31, neither tax penalty applies to you yet, so paying for a basic policy you'd rarely claim on may not be worth it.
• The real cost of 'cheap': If you're choosing a policy based on the cost alone, you might miss the fine print that'll hurt you later. Watch out for long waiting periods, low annual limits and exclusions that only show up when you need to make a claim.
• Several exclusions: Most bare-bones policies won't cover things like major dental, optical, physiotherapy or anything requiring a hospital stay beyond the basics. If you're planning a family or have an existing condition, a basic policy won't help much.

How can I find cheaper health insurance?

No matter what your budget, these are some universal tips that could help you get more bang for your buck.

• Drop unused extras: If you're paying for extras cover but can't remember the last time you made a claim, you're probably just subsidising other people's dental bills. Strip your policy back to what you actually use, or ditch it altogether.
• Switch funds: A lot of people stay with a fund they've outgrown because they assume switching means starting from scratch, but it doesn't. Your waiting periods carry over when you move to an equivalent level of cover, so there's no real reason not to shop around.
• Look for discounts. Lots of health funds run offers to attract new customers. This could be a reduced-price premium, free coverage for a few weeks or some other reward.
• Pay before 1 April. Prices go up on 1 April every year. Pay in advance before this date and you'll lock in last year's rates for a while longer.
• Increase your excess. Choosing a higher excess will lower your premium. Just remember, if you're looking to avoid the Medicare Levy Surcharge, make sure the excess is no higher than $750 for a single person.
• Look for a restricted fund. Restricted health funds offer cover to people working in specific industries as well as their families. These funds aren't run for profit, so they can be cheaper, but you have to find one that you're eligible for.
• Check if your employer partners with a health fund. Health funds are allowed to give discounts of up to 12% to companies, which those companies can then pass on to employees.

"Last year my first son was born, so getting affordable health insurance with flexible extras became more than just a tax-related priority. Having lived in Australia for only 2 years, I didn't know much about health providers. Finder's selection of best insurance gave me the confidence to check HBF. HBF's Bronze Hospital Plus with Flex 50 extras had everything I was looking for!"

Franco Fagioli

New parent, NSW

Frequently asked questions

• What is the lowest-cost form of health insurance?

  Basic plans are typically the cheapest hospital insurance policies you can get in Australia. They start from around $18 per week. Extras insurance is different. That only covers out of hospital treatments.

• How much is health insurance in Australia per month?

  The cheapest hospital insurance policy in Australia is around $80 per month in most states. However, the price changes depending on the level of cover you get (basic, bronze, silver and gold) and if you add on extras cover.

• Which state in Australia has the cheapest health insurance?

  The cheapest health insurance policies are available in Western Australia and the Northern Territory. A policy in those states costs as little as $60 and $30 per month, respectively. It's around $80 per month for the same policies in all other Australian states and territories.

• Is private health worth it in Australia?

  Not everyone needs health insurance. As long as you're entitled to Medicare, you'll be covered for free treatment in a public hospital if you're injured, fall ill or develop a medical condition in Australia.

  For many people, relying on Medicare is the cheapest option, but there are benefits to having private health insurance, and it can even save some people money.

  For example, if you earn over $105,000 a year, or $210,000 a year as a couple (including super and fringe benefits), you're hit with an extra tax unless you have hospital insurance. You can buy cover for less than the cost of the tax penalty, so it makes financial sense to get cover, even if you don't want it.

  Certain extras policies can also save you money if you regularly spend cash on non-hospital healthcare, such as prescription glasses, dental check-ups or even remedial massage. That's because you can easily claim back more than you pay in premiums over the course of the year.

  Remember though, private health insurance doesn't mean you'll get treatment for free. Whether it's a hospital or extras policy, you'll usually have some out-of-pocket costs. The exceptions are no-gap dental and no-gap optical, which are only offered by some health funds.

• Can I save money if I switch to a new health insurance provider?

  It's possible that the best way to get a cheaper health insurance policy is to switch to another provider. Switching health insurance is surprisingly easy, with all the hard work done for you, in the background.

• Is couples health insurance cheaper than 2 singles?

  No, 2 individual policies are the same price as a couples policy with the same level of coverage. In fact, buying couples health insurance may actually end up being more expensive than if you'd bought separate health insurance policies.

  That's because, in a couples policy, both members have to be on the same plan. So if one person wants top tier coverage, the other person has to get it too. If you and your partner want different levels of coverage, it's worth looking into individual policies instead. This is especially useful for health insurance for young adults, where only one of you may need health insurance for pregnancy, which is more expensive.

• What is the cheapest health insurance that avoids the Medicare Levy Surcharge (MLS)?

  You can avoid the Medicare Levy Surcharge (MLS) by holding any level of hospital cover that has an excess of $750 or less for singles, or $1,500 or less for couples and families. An extras policy does not count, it must be a hospital policy. The cheapest hospital options are typically basic cover policies. However, it can be worth looking at some bronze policies as they tend to cover a lot more and cost only a few dollars extra.

• What is the average cost of health insurance in Australia?

  The average cost of private health insurance in Australia is around $160 per month for a single person, which is around $1,900 per year. However, the price varies depending on things like your age, gender, location and the level of cover you want.

• What is the least expensive type of health insurance?

  The cheapest type of health insurance in Australia is Basic Hospital Cover, which offers limited coverage for essential treatments. If you're looking for cover solely to avoid paying extra tax, this is the type of insurance policy to look for.

• At what salary should I consider getting private health insurance in Australia?

  If you earn above $105,000 (individual) or $210,000 (family) annually, getting private health insurance can help you avoid the Medicare Levy Surcharge. This is currently (as of FY2026-27) between 1% and 1.5%, meaning if you earn $110,000, you'll pay an extra $1,100 in tax. At this point, it may be more affordable to take out a cheap health insurance policy to avoid paying this extra tax.

• What's the absolute cheapest health insurance policy type I can get?

  Basic hospital-only cover is the cheapest type of private health cover you can purchase in Australia. Bronze-tier hospital cover with no extras attached is also on the cheaper side, but still worth checking what's excluded before you sign up.

• Can I get health insurance for $20 a week?

  It's tight, but possible. If you're young, healthy and single, some basic hospital policies in cheaper states do fall around that mark after the rebate is applied. Just know that at that price point, you're getting bare-minimum cover, so double check you're actually getting something out of it.

• Is the cheapest health insurance actually worth it?

  It depends on why you're getting it. If you're young and healthy and mainly want to avoid the LHC or the MLS, a cheap basic policy can do the job. If you're likely to actually use it, the gaps in cover can cost you more than you saved on premiums.

• Does the cheapest hospital cover help me avoid MLS?

  Yes, as long as the policy meets the minimum requirements (basic hospital cover with an excess of $750 or less for singles, $1,500 or less for couples/families). Remember, not every cheap policy qualifies, so double-check the product details before assuming you're covered.

To make sure you get accurate and helpful information, this guide has been edited by Angus Kidman as part of our fact-checking process.

Written by

Ceyda Erem

Senior writer

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Ceyda Erem is Finder’s senior writer for insurance and has almost 10 years of experience writing about personal finance. Formerly a copywriter for several business and finance clients, Ceyda has written hundreds of articles, guides, blogs and more to ensure Australians stay in the loop about how to best manage their money. She has a Bachelor of Arts, Majoring in Writing from Macquarie University. See full bio

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