How much does a knee replacement cost?
Knee replacement surgery can get you moving again, but will it break the bank? Here’s how much it might cost and how private health insurance for a knee replacement works.

Knee replacement surgery can get you moving again, but will it break the bank? Here’s how much it might cost and how private health insurance for a knee replacement works.
Key points:
- The cost for knee replacement in Australia as a public patient is generally minimal
- In the public system, however, you will likely need to spend time on a waiting list
- In a private hospital with health insurance, specialist fees are typically around $4,900
- The out of pocket cost for a patient with private health insurance could likely be around $880
Knee replacement is a common medical procedure in Australia, and can be required for a number of reasons, from sporting injuries through to osteoarthritis. If you have been told you need to undergo a knee replacement, or think that this is a possibility in future, then you may well be curious about the costs involved.
The Australian Government says that when it comes to a knee replacement procedure, there are a number of factors that influence the cost, from fees charged by specialists, assistant surgeons and anaesthetists through to the costs associated with a hospital stay. There are also a range of other additional costs to consider, ranging from tests to aftercare and medications.
The choice of whether to go through the public hospital system as a public patient, or the private hospital system with private healthcare, can have an impact on your waiting time as well as your hip pocket.
The cost of a knee replacement surgery in a public hospital is typically free, but there can be long wait times involved. On the other hand, if you have private health insurance, it may be possible to reduce the wait time for your knee replacement surgery, and you may also be able to choose your own specialist, but you will likely face out of pocket costs.
So what do you need to know?
What is a knee replacement?
Knee replacement surgery, also known as total knee arthroplasty or total knee replacement, is a medical procedure in which parts of the knee joint are operated on and cut back to remove any diseased or damaged tissue. According to the government’s health advice service, Healthdirect, the removed joint parts are then replaced with metal and plastic prostheses that mimic the natural function of a knee.
What is the cost of a knee replacement in Australia?
There are generally two ways to have knee replacement surgery performed – via the public system, which is covered by Medicare, or in a private hospital, where some or all of the costs are covered by health insurance with hospital cover. There is also the option of funding the full cost of the surgery in a private hospital, without health insurance.
Public health system knee replacement:
If you don’t have private health insurance, then the cost of knee replacement in a public hospital could be nothing. If you’re happy to have knee replacement surgery performed as a public patient in a public hospital, you could face little or no out of pocket expense.
One main drawback of opting for the public hospital system is that you could be placed on the end of a long waiting list for surgery. The latest data from the Australian Health and Welfare Institute shows that total knee replacement has one of the longest median wait times in Australia, at 193 days. That can be a long time if you’re living with chronic pain and mobility loss.
Private health insurance knee replacement:
As a general guide, the Australian Government says the cost of a knee replacement in private hospital for patients with private health insurance is approximately $880. Specialist fees typically amount to $4,900, while hospital fees can be up to $18,000, with these expenses typically covered by private health insurance.
These costs do not cover other potential expenses such as the excess payable on your private health insurance, as well as specific diagnostic tests or pathology services, aftercare costs, the costs of pharmaceuticals, and assistant surgeon or anaesthetist costs that are not covered by Medicare, How much you’re likely to pay also depends on:
- the type of knee replacement surgery
- the excess under your health insurance policy
- the hospital you’re admitted to
- your choice of doctor
- You could also face additional costs for your anaesthetist.
Before you commit to any procedures, it’s a good idea to ask for a written quote that details your out-of-pocket costs. As a guide to what you could expect to pay, the table below shows a range of knee replacement procedures and the associated out of pocket costs based on the Medicare Benefits Schedule (MBS) – a list of health professional services that the Australian Government subsidises.
The balance remaining after the 75% Medicare rebate represents a general estimate of the likely out-of-pocket costs for knee replacement surgery, however keep in mind that this could vary.
Medicare Benefits Schedule (MBS) knee surgery costs vs Medicare rebate
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MBS item number |
Surgery | MBS Fee | Medicare rebate (75%) |
Balance remaining (25%) |
---|---|---|---|---|
49534 | Replacement of patella | $828.55 | $621.45 | $207.10 |
49517 | Partial knee replacement | $1,374.30 | $1,030.75 | $343.55 |
49518 | Total replacement (arthroplasty) of knee |
$1,501.30 | $1,126.00 | $375.30 |
49530 | Revision of total or partial replacement of knee |
$2,252.50 | $1,689.40 | $563.10 |
Source: MBS
In case you’re wondering about what ‘revision of total or partial replacement of knee’ means, Sydney Knee Specialists say all forms of knee replacement surgery have a finite lifespan. So, if your original knee replacement starts to work less effectively, you may at some stage need a ‘revision knee replacement operation’.
Private hospital, without health insurance (self-funded) knee replacement:
The Australian Government estimates that the cost of a knee replacement, taking into account specialist fees and hospital fees, would be around $22,900, and various providers surveyed by Canstar at the time of writing estimate the cost at $23,000 and above. This means that the cost of a knee replacement in Australia without insurance, if you choose to go private, could be substantial.
Medicare may cover some of the costs, for example, specialist fees where a MBS item number applies. However, according to PrivateHealth.com.au, it does not cover private patient hospital costs, for example, theatre fees or accommodation. If you choose to self-fund a knee replacement, it could be a wise idea to obtain written quotes from your treating doctors and allied health professionals, as well as from the private hospital.
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Wait times for knee replacement surgery
As discussed previously, if you are a public patient in a public hospital, and you need a knee replacement, you will be placed on a waiting list. The Australian Government currently says that wait times for knee replacements are among the longest in the public system, and median wait time can be 193 days.
If you are a private patient with private health insurance, attending a private hospital, you can typically schedule your surgery according to the specialist’s availability and your convenience.
If you have private health cover you will likely need to serve out wait times before you can make a claim for knee replacement surgery. This can be as little as two months or up to 12 months if problems with your knee relate to a pre-existing condition, depending on the rules of the insurer.
How to save on knee replacement costs
Here are a few steps that could help you reduce the cost of knee replacement surgery:
Know what’s offered by your level of cover
If you’re relying on private health cover to pay for knee replacement surgery costs, PrivateHealth.com.au states that you’ll need to find a level of cover that includes ‘joint replacement’. You can use Canstar’s comparison tool to compare hospital (or hospital and extras) policies that include this cover. The highest level of cover, Gold, generally includes this category of cover. Health insurance providers can also choose to add joint replacements to Bronze and Silver hospital policies, but it is optional, and the additional coverage is called a ‘Plus’ policy.
Ask your surgeon about out-of-pocket costs
Research by Medibank found there can be significant differences in the out-of-pocket costs charged by different surgeons. This can make it worth talking to your GP, and orthopaedic surgeon about the likely knee replacement costs. You may be able to partner with a specialist who charges a lower out-of-pocket cost.
Shop around and compare health fund providers
A report from the Australian Medical Association (AMA) found some health insurers can be more generous than others when it comes to the rebates paid for knee replacement surgery.
As the table below shows, your benefit could be 21% higher for a knee replacement surgery depending on your choice of fund. This difference highlights the value of shopping around between health insurance providers.
Benefits paid for knee replacement by different private health insurers (as at 8 December, 2023)
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MBS Fee | Bupa | HCF no gap |
AHM/ Medibank Private |
NIB no gap |
AHSA no gap (NSW) |
HBF No Gap rate |
Difference – highest to lowest |
---|---|---|---|---|---|---|---|
$1,540.55 | $2,386.75 | $2,291.85 | $2,308.10 | $2,228.15 | $2,689.50 | $2,296.15 | $468.55 (21%) |
Source: AMA Private Health Insurance Report Card 2023. Costs don’t take into account other expenses such as anaesthetics
Will I need rehab following knee replacement surgery?
According to HCF, you may be encouraged to stand in as little as 24 hours of knee replacement surgery to get the surrounding structures working as quickly as possible. From here, a physiotherapist may visit you in hospital to explain various knee exercises you can do.
After you leave the hospital, you may choose to continue with regular physiotherapy to help you knee recover. Healthdirect suggests that exercise and physiotherapy can help you recover sooner. The cost of physiotherapy can typically be claimed through extras cover.
If all goes well, Healthdirect says your knee strength and flexibility should return after about 12 months.
Cover image source: Yuri A – Peopeimages.com/Shutterstock.com
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This article was reviewed by our Finance Editor Jessica Pridmore before it was updated, as part of our fact-checking process.

Alasdair Duncan is Canstar's Content Editor, specialising in home loans, property and lifestyle topics. He has written more than 500 articles for Canstar and his work is widely referenced by other publishers and media outlets, including Yahoo Finance, The New Daily, The Motley Fool and Sky News. He has featured as a guest author for property website homely.com.au.
In his more than 15 years working in the media, Alasdair has written for a broad range of publications. Before joining Canstar, he was a News Editor at Pedestrian.TV, part of Australia’s leading youth media group. His work has also appeared on ABC News, Junkee, Rolling Stone, Kotaku, the Sydney Star Observer and The Brag. He has a Bachelor of Laws (Honours) and a Bachelor of Arts with a major in Journalism from the University of Queensland.
When he is not writing about finance for Canstar, Alasdair can probably be found at the beach with his two dogs or listening to podcasts about pop music. You can follow Alasdair on LinkedIn.
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