Thankfully, nobody needs to get health insurance in Australia since we have access to Medicare. However, there are some situations where it may make sense to get.
Medicare doesn't cover out of hospital services such as dental, optical or physiotherapy. Health insurance can if you get extras insurance. Policies start from around $13 a month and a few let you skip waiting periods for things like general dental. If you don't use your extras consistently though, it might not be worth having a policy all year round.
The Medicare Levy surcharge (MLS) is a government levy of up to 1.5% on your income if you earn more than $97,000 (or $194,000 for couples) and don't have private health cover. That money goes towards the public healthcare system. If you'd rather not pay that tax, you can avoid it with a basic hospital policy – they cost around $80 a month.
When you turn 31, a 2% Lifetime Health Cover loading (LHC) is added to your health insurance premium for every year you don't have hospital cover. That fee accumulates, so if you don't take out cover until you're 40, you'll be hit with a 20% loading. It also stays in place until you've held hospital insurance for 10 years. This seems like a big additional expense but AMA data suggests it may still be just as affordable if you don't take it out until later in life.
Public waiting lists for elective surgery are typically much longer than private waiting lists. If you don't want to wait, private health insurance might be a good option. Keep in mind though that if it's a pre-existing condition you're receiving treatment for – for example a bad knee – you'll need to have held cover for 12 months before insurance will cover you.
With private health insurance, you get to choose your own doctor and when you're treated. You can also get your own room in a private hospital, where possible. That choice may matter to you. If you're happy with a shared ward and any doctor though, insurance may not be worth the money.
| Response | WA | VIC | SA | QLD | NSW |
|---|---|---|---|---|---|
| Yes | 67.92% | 56.3% | 61.33% | 55.84% | 54.31% |
| Somewhat | 30.19% | 38.52% | 38.67% | 40.61% | 41.21% |
| No | 1.89% | 5.19% | 3.55% | 4.47% |
The government actively encourages people to take out private health cover to alleviate pressure on the public system. However, that doesn't mean it's always the right decision for you. For example, private health insurance might not be worth it if:
Why compare health insurance with Finder?
We don't ask for your phone or email to see prices.
With 1 click, you can open your results to nearly every fund in Australia.
You pay the same price as going direct – we charge no fees.
Why compare with us
Our customers trust us
You pay nothing. Finder is free to use. And you pay the same as going direct. No markups, no hidden fees.
You save time. We spend 100s of hours researching health insurance so you can sort the gold from the junk faster.
You can trust us. We say it like it is. We aren't owned by an insurer and our opinions are our own.
Prenatal care in Australia is covered by Medicare, meaning it’s mostly free through the public system. You can choose to go private, which comes with a lot of benefits – but there are out-of-pocket expenses to watch out for.
The 8501 visa condition means you need to get health insurance for your stay.
See if Latrobe health insurance is right for you.
RT Health Fund offers a range of health cover options to transport and energy industry employees and their families.
Do you qualify for Defence Health health insurance? Find out what you could receive and what options are available to ADF members as well as their families and siblings.
Looking for health cover but aren't sure which policy is best? This article looks at Australian Unity's health insurance options and helps you decide whether any of its policies are what you need.
Our experts compared 30+ funds and analysed hundreds of policies to help you find the best health insurance.
Start your search today to find a Queensland health fund that offers value for money and the cover you need.
HCi is a not-for-profit health fund that offers hospital, extras and combined cover that includes a wide range of medical services and treatments.
As a not-for-profit brand, HIF is able to offer low premiums across both hospital and extras policies.
