What is Private Health Insurance?

Private health insurance is a type of insurance policy that provides cover for a variety of healthcare options and medical expenses, including costs that Medicare does not cover.
Australians wanting to buy private health insurance can choose hospital and/or extras cover:
- Hospital cover allows a patient to be treated in a private hospital, or to be treated as a private patient in a public hospital, with their choice of doctor. It also covers a portion of the medical expenses involved when being admitted to hospital.
- Extras cover helps with expenses of other health services that Medicare does not cover. This could include allied healthcare, such as physiotherapy, chiropractic treatment, dentistry and orthodontics, glasses and contact lenses. Some policies also cover lifestyle benefits, such as gym memberships.
Private hospital policies are typically offered in standard category “tiers” – Gold, Silver, Bronze or Basic. These tiers must cover the minimum standard of treatments as determined by the Australian Government. Each tier could also include a “Plus” option, with additional coverage, depending on the insurer.
Extras policies are not required to meet any tier requirements, and are typically offered with a specific group of people in mind, such as cover for single people, young families or older Australians.
Many insurers also offer the ability to pay an excess (an up-front fee) if anyone covered by the policy is admitted to hospital, which could lower the premium (the fortnightly, monthly or annual cost) of the policy.
Compare Health Insurance
Compare Health Insurance
A good place to start comparing private health insurance could be to work out what policy factors are important to you.
Health insurance has different levels of cover suited to different life stages and needs. For example, you may need a hospital policy that covers a particular medical condition, or you may want to ensure you have help paying for your children’s dental work. When considering your health insurance needs, questions you may like to consider could include:
- What health insurance life stage are you? (e.g. single, couples, families)
- Do you want extras cover? If so, what services do you spend money on now? What might you need in the future?
- Do you or your family have any pre-existing conditions that need cover?
- What is your budget for premiums and excess?
Once you know what policy inclusions are important to you, the excess you are comfortable with and the premium price you can afford, it’s time to compare your options. Canstar can help you compare health insurance providers and make a shortlist of policies that could suit your needs, based on features and price.
Compare Health Insurance
How does Canstar compare health insurance?
Canstar compares tens of thousands of quotes from thousands of eligible health insurance products. Every year, we perform a detailed analysis to help you to choose a health insurance policy that includes hospital cover, extras cover, or both hospital and extras cover, to suit your household needs and budget.
Whether you’re looking for singles health insurance, couples health insurance, student health insurance, family cover or overseas visitors health insurance, Canstar can help.
Looking for cheap health insurance?
If you want a cheap health insurance policy, a good first step may be to compare premium quotes from a range of providers based on the level of cover you need. It’s important to also factor in the policy inclusions and exclusions when shopping around. A cheap health insurance policy might save you money each month, but it’s important to make sure you have the hospital or extras cover you might need to avoid any surprises in the future. Is there a trade off when it comes to the number of conditions and treatments you’re covered for compared to a more extensive policy that may cost more? For example, for a cheap health insurance option you might decide on a ‘basic’ level hospital policy, but this would likely offer less cover than a bronze, silver or gold policy would. It’s important to check your policy’s cover limits and excess too, so you’re aware of what you might need to pay out-of-pocket if you need to make a claim.
Compare Health Insurance

As Canstar’s Editor-in-Chief, Nina heads up a team of talented SEO experts and journalists committed to helping empower consumers to take greater control of their finances. Previously Nina founded her own agency where she provided content and communications support to clients around Australia for eight years. She also spent four years as the PR Manager for American Express Australia, and has worked at a Brisbane communications agency where she supported dozens of clients, including Sunsuper and Suncorp.
Nina has ghostwritten dozens of opinion pieces for publications including The Australian and has been interviewed on finance topics by the Herald Sun and the Sydney Morning Herald. When she’s not dreaming up ways to put a fresh spin on finance, she’s taking her own advice by trying to pay her house off as quickly as possible and raising two money-savvy kids.
Nina has a Bachelor of Journalism and a Bachelor of Arts with a double major in English Literature from the University of Queensland. She’s also an experienced presenter, and has hosted numerous events and YouTube series.
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