Health insurance tiers

Basic tier

Basic-tier hospital policies don't cover much. In fact, they are only required to offer restricted cover for 3 treatments. However, there are some other benefits to a basic hospital policy, including some tax implications. Here are a few groups of people who may benefit from basic coverage:

• 30 year-olds: A basic hospital policy is all you need to avoid the LHC loading that will kick in after you turn 31. If you don't have hospital cover after your 31st birthday, the LHC will add 2% per year onto the cost of any future private health insurance policy you choose to take out.
• High income earners: If you earn of $90k per year, you'll be subject to the MLS, an additional tax on your income. You can avoid the MLS completely by holding even a basic-tier hospital policy. Sometimes, the cost of the policy can be less than the amount the MLs would cost you.
• Young people with basic needs: A lot of "basic plus" policies cover more than just the basics, generally for slightly more than a bare-bones basic policy. If you're in good health and aren't planning on having children in the private system, then a basic plus policy might suit you.

Bronze tier

Bronze hospital insurance is more comprehensive than basic cover, but is still quite affordable. Bronze hospital policies cover a range of common treatment types, including joint reconstructions, bone, joint and muscle issues and hernia and appendix treatment. Here are a few groups of people who may benefit from bronze coverage:

• Young people: If you're young with relatively simple health needs but don't plan on having children in the private system, then a bronze policy may be the right fit for you. It covers a range of important treatments, but nothing too complex.
• Young families: Bronze policies also cover a range of treatments useful for young children and teenagers. These include bone, joint and muscle, tonsils, adenoids and grommets and ear, nose and throat treatments. If you don't plan on having more kids, a bronze policy can be a good level of cover for your entire family.
• Women: Provided you don't want to have children in the private system any time soon, bronze cover is great for women. It covers a range of relevant treatments, including cancer, medically necessary breast surgery, gynaecology, as well as pregnancy termination and miscarriage.

Silver tier

Silver coverage is comprehensive, covering more complex treatments than bronze-tier policies. These include lung and chest, back, neck and spine and dental surgery, although dental surgery is often found on "bronze plus" policies. Here are a few groups of people who may benefit from silver coverage:

• Child-free families: Silver coverage doesn't include pregnancy coverage, so people who aren't looking to start a family may be well-suited to a silver policy.
• Middle-aged Australians: Silver policies cover a range of treatments that are more relevant to Australians aged around 30 to 50 years old. If the silver-tier treatment list matches your needs as you grow older, it might be a good option for you.
• People with specific medical needs: If there are silver treatments that match your specific medical needs, such as diabetes or pain management, then a silver policy is a good fit for you.

Gold tier

Gold hospital polices are the most comprehensive policies available in Australia, with coverage for all 38 clinical categories. Here are a few groups of people who may benefit from gold coverage:

• People planning on having children: The gold tier is the only one to include mandatory coverage for pregnancy and childbirth in the private system, as well as for assisted reproductive services, like in vitro fertilisation (IVF). If you're looking to have children in the private system, a gold policy might be worth considering. Note that there is a 12-month waiting period for these services.
• Older Australians: Gold policies cover a range of treatments such as cataracts and joint replacements, which may be useful for older Australians.
• People with complex medical needs: There are a few complex procedures that are only available on gold-tier hospital policies, including weight loss surgery, insulin pumps and sleep studies. If there are gold-tier treatments that you think might be useful for your specific needs, consider a gold policy.