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 premium
  Basic	$78.70
  Bronze	$97.80
  Silver	$153.47
  Gold	$281.56

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.

5 ways to reduce the cost of your private health insurance

• Increase your excess: Your excess is the amount you pay when admitted to hospital. Opting for a higher excess can lower your monthly premium. It's a smart trade-off if you're generally healthy, just make sure you have the amount saved in case you do need to claim.
• Drop unused extras: Most people pay for extras services they never use. To get a better idea of what kind of extras you regularly use and can afford to drop, check your claims history. You can always add it back when your needs change.
• Switch funds: Switching funds doesn't mean serving waiting periods again. Under community rating rules, your waiting periods transfer across to an equivalent level of cover, so there's nothing stopping you from shopping around for a better deal each year.
• Pay annually instead of monthly: Most funds offer a discount if you pay your annual premium upfront before the April 1 price rise. Doing this effectively locks in the old price for another 12 months.
• Check rebate tier eligibility: The government rebate can reduce your premium by 8–30%+ depending on your age and income. If your income has changed and you haven't updated your details with your fund, you could be on the wrong tier and paying more than you need to.

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 March 2026.

Cost of extras cover by state

Extras cover starts from $12.07 per month for a single 30-year old earning less than $105,000 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	$62.51
  New South Wales	$62.51
  Northern Territory	$52.36
  Queensland	$60.52
  South Australia	$60.43
  Tasmania	$55.66
  Victoria	$60.92
  Western Australia	$58.38

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 $105,000 per year with a $750 excess. Analysis performed April 2026. Note that other discounts and conditions may change the final price you pay.

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 Gold 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.

• Why is private health insurance so expensive?

  Health insurance premiums reflect the actual cost of private hospital care, such as rising wages, medical technology and facility costs. Australia also uses community rating, meaning funds can't charge sick people more, so costs are spread across all members. An ageing population claiming more frequently could also push prices up for everyone.

• Will my premium go up in 2027?

  Most likely. Premiums change once a year, with any industry-wide rise taking effect on 1 April. The most recent rise, on 1 April 2026, averaged 4.41%, the largest increase since 2017. One way to soften the impact is to pay your full annual premium before April 1 each year, which locks in the current price for another 12 months.

• Is health insurance tax deductible?

  Private health insurance premiums are not directly tax deductible in Australia. However, you can claim the government rebate either as a premium reduction through your fund or as a tax offset when you lodge your return. If you earn above the Medicare Levy Surcharge threshold and don't have hospital cover, you'll pay an extra 1–1.5% tax, meaning cover can effectively reduce your tax bill.

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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Ceyda has written 244 Finder guides across topics including:

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Gary Ross Hunter

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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

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Gary Ross has written 519 Finder guides across topics including:

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