How do you find the best private health insurance?
When it comes to private health insurance in Australia, no one policy is the ‘best’. The answer will come down to you and your needs as well as your budget. If you’re single, for instance, you’re likely to have very different healthcare needs than a family. Likewise, the best health insurance for a young couple is likely to be quite different from a policy that’s well-suited to an older person.
A good place to start when comparing health insurance policies can be to ask yourself some key questions:
What type of hospital cover do you need? Do you want comprehensive coverage for you and your family, that will potentially allow you to skip lengthy public hospital waiting lists? Or do you only need a more basic hospital policy that will help you avoid tax burdens like the Medicare Levy Surcharge?
Do you need extras? Extras insurance provides some cover for services, like dental, optical, and physio, that aren’t covered by Medicare. If you regularly use services like these, then extras could help you save, but if not, you may find you could save by ditching extras and just taking out hospital cover.
Do you have concerns about your health long-term? Depending on your family history, you may want the peace of mind of knowing you have hospital cover that includes procedures like joint replacements or heart and vascular treatments.
What's your budget? The average family hospital and extras insurance policy in Australia currently costs around $578 per month for an established family (two adults aged 36-59 with children) according to Canstar research, so it’s important to consider your budget and the best value for money you can get with your cover.
What are the best health insurance providers in Australia?
If you’re looking for the best-value health insurance, consider the winners of Canstar’s annual Health Insurance Awards, which recognise the health funds providing outstanding value to customers nationally and by state or territory.
Five health funds topped the list nationally in Canstar’s 2026 Health Insurance Awards: Outstanding Value Award – Health Insurance Australia: Bupa, GMHBA, HBF, HCF, and Medibank.
Bupa
Bupa picked up a National Award for the fifth year in a row, and has won for extras again in the same five states as last year. Their Freedom 60 and Freedom 60 Boost products pay 60% of whatever the provider charges, up to a combined annual limit. That percentage-back structure is central to their extras performance — when the cost of going to the dentist or the optometrist goes up, Bupa member rebates go up with it. On a fixed-dollar policy, the rebate stays the same and the extra cost comes out of your pocket. Providers in Bupa's Members First network, one of the largest in the market, cap their fees, so members pay less at the point of service. Extras is where Bupa leads, and because that strength carries through into packages, which is how most Australians hold their cover, it underpins their national position.
GMHBA
GMHBA, a not-for-profit, member-owned fund based in Geelong, has retained the National Award. It's one of the only funds in the market to waive the excess on day surgery admissions on its hospital cover. Where other funds charge $250-$500 per admission, GMHBA members pay nothing. For older Australians who may be more likely to need day procedures, that could offer meaningful savings.
In extras, GMHBA's SmartCare range gives you a single flexible annual limit to use across any included services — all on dental, all on physio, or split however you need. Customers can get 100% back on preventive dental, and 60% on everything else. When combined as a package, GMHBA adds optical cover and lets any unused annual limit roll over to the following year.
HBF
HBF has been a strong performer in extras for several years, and has now received a National Award for the first time. Their extras range features percentage-back structures and combined annual limits so you're not locked into set amounts for each service, and the amount you get back increases as costs rise. Their Flex 50 is one of the standouts: 50% back on treatments, an $800 per-person combined limit, and a separate $200 optical limit at 100%. The combined limit isn't tied to specific services — you decide where it goes based on what you actually need in a given year.
This year, we saw HBF strengthen their hospital cover. Premiums moved well below the market across the range — several Bronze and Silver products saw no increase at all, and their Silver Hospital Plus increases came in lower than comparable products. HBF also introduced Essential Silver Hospital, adding a third Silver Plus option at a lower price point, helpful if you want more comprehensive cover than Bronze but don't need to pay for Gold.
HCF
HCF has retained the National Award for the 11th year in a row, and the Tasmania packages state award this year. HCF's extras products perform strongly in every state, anchored by their nationwide gap-free provider network across dental and optical. Members visiting a participating provider pay nothing out of pocket at the point of service. This year HCF also introduced new hospital products including Hospital Bronze and Hospital Basic Plus, expanding their range at the more affordable end. HCF doesn't offer standalone hospital policies with pregnancy cover. However, it's offered in their My Family Silver Plus packages, which perform strongly in our Awards, with HCF winning TAS this year.
Medibank
Medibank has retained the National Award and won six of seven state awards for hospital cover, remaining one of the strongest on the market with the breadth and depth of their hospital range. Their Silver Plus products — Core, Support, Secure, and Advanced — give people four different price points to hold Silver Plus cover, each with different inclusions. In our Mature profiles, where hospital admissions carry the most weight, Medibank's Silver Plus products consistently deliver competitive net costs across the admission scenarios we model. Their Bronze Plus suite is similarly competitive, expanding the range at the more affordable end.
For extras, Medibank's policies generally pay percentage back rebates for providers in their network and fixed-dollar amounts for those that aren't, so the network can make a meaningful difference to what you get back.
You can also take a look at our annual Most Satisfied Customers Award, which recognises the best provider in terms of customer satisfaction as rated by everyday Australians like you. Canstar’s 2026 Most Satisfied Customers Award: Health Insurance was awarded to Queensland Country Health Fund.
How does private health insurance work in Australia?
Private health insurance in Australia actually consists of two separate components: hospital and extras cover. These are often bundled together and sold as combined hospital and extras cover, sometimes with a discount, but they are two distinct types of insurance, and you can purchase both separately. Here’s a brief rundown of what they are and what they cover:
Hospital cover
Private hospital cover can help cover the cost of treatment in hospital as a private patient – it can allow you to choose your own hospital and doctor and also to skip public hospital waiting lists for elective surgeries, which can sometimes be lengthy. It can also allow you to stay in a private room, as long as one is available. There are four tiers of hospital cover in Australia: Basic, Bronze, Silver, and Gold, with Gold typically being the most expensive but also the most comprehensive.
Extras cover
Extras insurance can help you cover the cost of services that aren't subsidised by Medicare. This commonly includes optical, dental, physiotherapy, chiropractic care, remedial massage, and psychology, as well as a range of others. Extras policies generally have annual limits for each type of service. Sometimes the limit may be spread across a few of them, meaning there may be an annual limit for dental, optical, and physio combined. The higher the level of cover you choose, the higher the limits will likely be.
What does health insurance cost in Australia?
If you’re looking for the best health insurance, the price may well be a determining factor for you. We crunched the numbers on the policies in our database and as of November 2026, here’s how the average montly cost of a combined hospital and extras policy shakes out for young (under 36), established (36 to 59) and mature (60 and over) Australians:
- Young single: $237
- Young family: $483
- Established single: $289
- Established family: $578
- Mature single: $305
- Mature couple: $596
You may be wondering why the average price increases as you get older. Health insurance providers in Australia aren't allowed to charge more based on age or pre-existing conditions. The reality, however, is that the older you get, the more comprehensive cover you're likely to need. This comprehensive cover will often cover the broadest range of treatments, but come at a higher price.
When trying to find the best health insurance that offers the greatest value for money at your stage of life, you may find it’s worth your while to consider switching up your health fund. If you already have health insurance and you feel you’re paying too much, a new provider could offer you comparable coverage for a cheaper price.
What are the pros and cons of private health insurance?
Pros
- Potential for shorter wait times: Public hospital waiting lists can be lengthy in Australia, and private health insurance can help you skip the queue.
- Greater choice in your treatment: With private hospital insurance, you may have the ability to choose your own doctors and specialist and even hospital.
- Avoiding the Medicare Levy Surcharge: The MLS is a fee of up to 1.5% of your income that's added to your yearly tax bill if you earn above a certain threshold, unless you have suitable hospital cover.
- Access to private rooms: If you value your privacy, private health insurance can give you access to a private hospital room, if one is available.
Cons
- High premium costs: Health funds raise their premiums every April, and this year, some hiked prices by much more than the government-approved average increase of 4.41%. This can put a strain on your family finances.
- Choice is not guaranteed: If your health fund does not have an agreement with your chosen doctor or specialist, then you may find that you’ll be asked to pay high out-of-pocket costs.
- Potential to pay for services you don’t use: If you don’t wear glasses and rarely visit the dentist, for example, then you may find that extras insurance does not make financial sense for you, and you’re paying a premium for stuff you don’t need.
- Complicated fine print: Health insurance policies can be very dense when it comes to the fine print, and if you don’t read your policy documents, like the Private Health Insurance Statement (PHIS), carefully and ask for clarification, you may find you’re not covered for what you thought you were.
