How much does private health insurance cost?

Average monthly cost of hospital cover in Australia

Hospital cover is available in four different tiers: Gold, Silver, Bronze and Basic. Each tier covers a government-mandated list of treatments, making it easier to compare like-for-like.

We regularly crunch the numbers for our entire database of health funds in order to work out the average premium for each tier of hospital coverage. The most recent calculations are on the chart below. Each tier includes 'plus' policies as well.

These averages are based on the prices from all states for policies with a $750 excess for a single policy holder, before any surcharges or the private health insurance rebate are applied. The price of your policy may be more or less than this, depending on your circumstances.

What can impact the price of my health insurance?

There are several factors that will change the price of your health insurance premiums, whether you get hospital or extras cover. Here are the main ones to consider.

• Private Health Insurance Rebate: The price of your policy can vary by over 25% due to rebate. It's mainly based on your age and income.
• Lifetime Health Cover Loading: If you don't have hospital cover after age 31, a 2% loading will be added to the price each year you don't have it.
• State: The cost of medical care is different in every state, and that's reflected in your premiums.
• Policy Excess: A policy with a larger excess will have lower premiums, but you will have more out of pocket costs when you claim.

Average cost of hospital cover in each state

The cost of health insurance varies by state. This is because the cost of private healthcare is more expensive in some locations, which increases the cost of insurance. For example, health insurance is significantly cheaper in the Northern Territory than it is in any other state.

Cost of extras cover by state

The current average cost of extras is $12.07 per month for a single 30-year old earning less than $90,000 per year. However, because extras policies are so varied, it's hard to generalise. You should compare health insurance with Finder's tools to work out how much your perfect extras policy is likely to cost.

We regularly run the numbers on our entire health insurance database to find the average cost of extras cover for each state. Our most recent calculations are shown in the chart below.

The cheapest hospital policies in Australia

'Cheapest' is a relative term for hospital cover. Whether you need health cover for tax or health cover for pregnancy makes a big difference. Luckily, the Australian government has a tier ranking for hospital cover, from Gold down to Basic. We've listed each tier below.

Remember, the cheapest policy is not always the best policy. Here's a good tip - when you're comparing hospital insurance policies, look out for 'Plus' policies. These products cover more treatments than the minimums required from each tier, often for just a few more dollars a month. They're often great value.

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Frequently asked questions

• What factors affect the cost of private health insurance?

  The cost of private health insurance is affected by a variety of factors, including the level of coverage chosen, the policy excess and the insurer's pricing policies.

• Can I switch private health insurance providers if I am unhappy with my current policy?

  Yes, it is possible to switch private health insurance providers in Australia if you are unhappy with your current policy. This can be done at any time, although there may be waiting periods for certain services if you switch providers. It is recommended to carefully compare policies from different insurers and consider any potential costs or disruptions to your current coverage before switching providers.

• Are there any tax benefits associated with purchasing private health insurance in Australia?

  Yes, there are tax benefits associated with purchasing private health insurance in Australia. These include the Private Health Insurance Rebate, which is a tax offset that can reduce the cost of premiums, and the Medicare Levy Surcharge, which is an additional tax that may apply to individuals who do not have private health insurance. These tax benefits can vary depending on a person's income and age.

• What should I do if I have a complaint or dispute with my private health insurer?

  If you have a complaint or dispute with your private health insurer, the first step is to try and resolve the issue with the insurer directly. This may involve contacting the insurer's customer service team or escalating the issue to a manager or complaints department. If the issue cannot be resolved directly with the insurer, you can seek assistance from the Private Health Insurance Ombudsman, who can provide information and assistance in resolving disputes with insurers.

• What should I consider when choosing a private health insurance policy?

  When choosing a private health insurance policy, it is important to carefully consider your own health needs and financial situation. This may involve researching and comparing different policies from different insurers, as well as understanding the level of coverage and any exclusions or restrictions that may apply.