How much does private health insurance cost?

*Based on the Finder Consumer Sentiment Tracker

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.

• See table of data

  Hospital tier	Average monthly income
  Basic	$78.36
  Bronze	$95.73
  Silver	$146.27
  Gold	$229.88

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.

Cost of hospital cover in each state

The cost of health insurance varies by state. Below is the breakdown of hospital cover by state and tier, as of January 2025.

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 $97,000 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.

• See table of data

  Name	Value
  Australian Capital Territory	$59.68
  New South Wales	$59.68
  Northern Territory	$50.54
  Queensland	$58.00
  South Australia	$58.20
  Tasmania	$53.78
  Victoria	$58.50
  Western Australia	$55.93

Why do health insurance prices vary by state?

There are few reasons why health insurance prices vary by state, despite the health insurance policies being the same. We can't into the total theory of insurance underwriting here, but 2 big reasons are:

• Cost of health care: The cost of health care varies by state. Rent, wages or supplies might be cheaper in some states than others. For example, the price of rent, wages and power for a Perth hospital might be lower than in Sydney, which could lower the amount insurance companies are billed by hospitals.
• Demographics: This is a big one - WA and the NT have wildly different demographics than the overall population. The NT has a much lower average age, mostly thanks to semi-temporary young workers in Darwin and Alice Springs working government and military jobs. A younger population is going to claim far less than an older population, which will result in lower premiums for everyone.

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.

Prices based on single 30-year old living in NSW earning less than $97,000 per year with a $750 excess. Analysis performed January 2025. Note that other discounts and conditions may change the final price you pay.

**TUH and Union both have cheaper silver policies, but both are restricted funds. Mind, all you need to join union health fund is join your union, which you should probably do anyway.

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.

*For example, the cheapest policy on the table above is Mildura Health Fund, which is a hyper-regional fund, and may not make sense for you if you don't live in western Victoria. You'll need to find the policy that is both cheap and suits you best.

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.

Written by

Tim Bennett

Insurance expert

A seasoned journalist with over 10 years of experience in news, politics and finance reporting, Tim has previously held roles at the ABC, SBS and Fairfax Media. Tim’s expert insights have been quoted in The Australian, The Daily Telegraph, The Courier Mail and more. He regularly appears on TV and radio, and has been interviewed on 7 News, Sunrise, SBS News, ABC Local, 3AW and 5AA. Tim is passionate about simplifying complex insurance topics for Australian consumers. He holds a Bachelor of Arts (Politics) from Macquarie University and a Tier 1 General Insurance (General Advice) certification, which meets the requirements of ASIC Regulatory Guide 146 (RG146). If you’re interested in a media interview with Tim, please reach out to our PR team at aupr@finder.com. See full bio

Tim's expertise

Tim has written 154 Finder guides across topics including:

• Personal finance
• Financial comparison
• Health insurance
• General insurance
• Life insurance

Co-written by

Gary Ross Hunter

Journalist

Gary Ross Hunter has over 6 years of expertise writing about insurance, including life, health, home, and car insurance. Having reviewed hundreds of product disclosure statements and published over 800 articles, he loves simplifying complex insurance topics for everyday readers. Gary has contributed to major outlets like Yahoo Finance, The Sydney Morning Herald, and news.com.au, and holds a Bachelor of Arts (Honours) in English Literature from the University of Glasgow, along with a Tier 2 General Advice certification, ensuring his work adheres to ASIC’s RG146 standards. See full bio

Gary Ross's expertise

Gary Ross has written 607 Finder guides across topics including:

• Health, home, life, car, pet and travel insurance
• Managing the cost of living