How much is private health insurance?
The cost of private health insurance will depend on different factors such as the health fund you choose, the policy you select, your family group (how many people are being insured) and the state or territory you live in.
As part of Canstar’s Health Insurance Awards, our expert researchers assessed the cost and features of policies and providers all across Australia. From the extensive research, we’re able to provide the average cost of health insurance in Australia based on policies on our database. We’ve considered different life stages or ‘profiles’ for young, established and mature people.
Please note that the differences in price across profiles for hospital insurance are based on different assumed levels of cover and inclusions, with people in the established and mature profiles assumed to have more comprehensive hospital insurance.
Average annual cost of combined health insurance (hospital and extras cover)
Single | Couple | Family | |
|---|---|---|---|
Young | $2,803 | $5,427 | $5,687 |
Established | $3,295 | $6,382 | $6,690 |
Mature | $3,538 | $6,843 | N/A |
Source: www.canstar.com.au - 5/11/2025. Based on health insurance policies on Canstar’s database. OSHC, visitor and corporate policies, as well as policies from restricted funds, are excluded. The Australian Government Private Health Insurance Rebate, Tier 1 for under 65s, of 16.192% has been applied to premiums, with the Tier 1 for 65-69 Rebate of 20.240% used for the Matures profile. Average premiums based on state averages weighted by proportion of insured population (APRA Quarterly Private Health Insurance). Ratings profiles based on those used in Canstar's Health Insurance Star Ratings, refer to the methodology for more information.
Canstar Research factored in the private health insurance rebate in these calculations. If you have private health insurance, you may be able to receive a rebate from the Federal Government to help with the cost of your premiums. The rebate is income tested and different thresholds apply depending on whether you’re a single person or part of a couple/family.
Keep in mind that these average costs are only a general guide for those looking for a lower level of cover for both hospital and extras. These averages also assume that the Tier 1 Extras profile is used, which must include cover for dental check ups, as well as other optional extras.
To obtain an estimate closer to your requirements, you can get a personalised quote by clicking the ‘compare health insurance’ button or book a call with a health insurance specialist.
What does hospital-only cover cost?
Here’s a closer look at how much a hospital policy may cost you depending on your life stage and family group. Note that policies for an established person must include cover for heart and vascular treatment; and policies for a mature person must include heart and vascular treatment as well as joint replacements.
Average annual cost of hospital insurance
Single | Couple | Family | |
|---|---|---|---|
Young | $2,043 | $4,064 | $4,149 |
Established | $2,595 | $5,139 | $5,193 |
Mature | $2,820 | $5,563 | N/A |
Source: www.canstar.com.au - 5/11/2025. Based on health insurance policies on Canstar’s database. OSHC, visitor and corporate policies, as well as policies from restricted funds, are excluded. The Australian Government Private Health Insurance Rebate, Tier 1 for under 65s, of 16.192% has been applied to premiums, with the Tier 1 for 65-69 Rebate of 20.240% used for the Matures profile. Average premiums based on state averages weighted by proportion of insured population (APRA Quarterly Private Health Insurance). Ratings profiles based on those used in Canstar's Health Insurance Star Ratings, refer to the methodology for more information.
To make it easier to compare products, providers have to categorise hospital policies into Basic, Bronze, Silver and Gold tiers. Each tier is required to provide a minimum standard of coverage for certain hospital procedures and services, with Basic policies providing the lowest level of cover and Gold policies being the most comprehensive. Providers can also offer ‘Plus’ policies (excluding Gold), which provide additional cover above the minimum standards.
The hospital excess you choose can also impact the cost of your premiums. Like car insurance, typically the higher your excess is, the lower your premiums. But it also means you’ll pay more upfront if you are admitted to hospital.
What does extras-only cover cost?
The cost of extras-only health insurance can vary depending on the types of treatments and services you want included. As there’s no standard tiers for extras cover, Canstar has broken it down into three different tiers. Tier 1 represents a lower amount of coverage, while Tier 3 represents the highest level of coverage.
To give you a rough idea of how the tiers break down, Tier 1 must at least include dental check-ups, with other inclusions optional. Tier 3, by contrast, is the most comprehensive tier, and must include cover for dental check-ups, crown veneers, root canals, physiotherapy, chiropractic, optical and a range of other items. These are further defined in our Health Insurance Star Ratings and Awards methodology.
Average annual cost of extras insurance
Single | Couple | Family | |
|---|---|---|---|
Tier 1 | $781 | $1,558 | $1,690 |
Tier 2 | $949 | $1,880 | $2,006 |
Tier 3 | $1,062 | $2,100 | $2,234 |
Source: www.canstar.com.au - 5/11/2025. Based on health insurance policies on Canstar’s database. OSHC, visitor and corporate policies, as well as policies from restricted funds, are excluded. The Australian Government Private Health Insurance Rebate, Tier 1 for under 65s, of 16.192% has been applied to premiums, with the Tier 1 for 65-69 Rebate of 20.240% used for the Matures profile. Average premiums based on state averages weighted by proportion of insured population (APRA Quarterly Private Health Insurance). Ratings profiles based on those used in Canstar's Health Insurance Star Ratings, refer to the methodology for more information.
What does pregnancy cover cost?
Here’s how much you might have to pay for pregnancy cover, depending on whether you need a single or family policy:
Average annual cost of pregnancy (obstetrics) cover
Single | Family | |
|---|---|---|
Hospital and | $4,418 | $8,809 |
Hospital | $3,479 | $6,884 |
Source: www.canstar.com.au - 5/11/2025. Based on health insurance policies on Canstar’s database. OSHC, visitor and corporate policies, as well as policies from restricted funds, are excluded. The Australian Government Private Health Insurance Rebate, Tier 1 for under 65s, of 16.192% has been applied to premiums, with the Tier 1 for 65-69 Rebate of 20.240% used for the Matures profile. Average premiums based on state averages weighted by proportion of insured population (APRA Quarterly Private Health Insurance). Ratings profiles based on those used in Canstar's Health Insurance Star Ratings, refer to the methodology for more information.
Having pregnancy cover in your health insurance policy can generally cover you if you choose to be a private patient in either a private or public hospital. You’re also usually able to choose your own obstetrician and other certain medical professionals, as well as the hospital you want to give birth at. You may also get your own private room, however, this will depend on availability.
A Gold or Silver Plus tier hospital insurance policy with pregnancy and birth cover included is required in order for you to claim any benefits for in-hospital services related to your pregnancy. A waiting period of 12 months generally applies to these kinds of policies, which means you’ll need to have taken out and held the policy for at least 12 months before any pregnancy related claims will be approved.
Learn more about Health Insurance
The main difference between private and public hospitals mainly comes down to choice, where private patients have more say in their healthcare, such as being able to potentially choose their own doctors and where they’re treated. Private patients may also get their own room in both public and private hospitals, depending on availability.
Extras-only health insurance is a type of health insurance that provides cover for ‘general’ treatments and services from medical and allied health professionals not typically subsidised through Medicare, such as dental, optical and physiotherapy.
If you’re unhappy with your current policy or just wanting a change, you can switch your current health cover at any time. If you plan to switch your policy to a new health fund, your new provider can typically handle much of the transfer for you. But you’ll need to provide them with your details as well as the details of your old policy and provider.
If for whatever reason you wish to suspend or ‘freeze’ your health insurance policy, you may be able to do so under certain circumstances. You will have to contact your health insurance provider and complete any relevant online application to suspend your policy.
When comparing health insurance policies, there are a number of factors to consider, but a good place to start could be to work out what types of cover or other policy factors are important to you. The level of cover that’s best for you will typically be determined by what stage of life you’re at. For example, you may need a hospital policy that covers a particular medical condition, or a policy that includes obstetrics if you’re planning for a pregnancy.
Here are some questions you may like to consider when searching for a policy:
- What life stage are you at? (e.g. are you single, in a couple, or part of a family with children)?
- 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 to be included in the cover?
- What is your budget for premiums and excess payments?
The Federal Government does offer tax incentives for Australians with private health cover. The two that may impact your tax return are:
- Private health insurance rebate: If you have private health insurance, the government may contribute towards your premiums through this rebate.
- Medicare Levy Surcharge (MLS): Different from the Medicare Levy, the MLS is an amount that taxpayers earning above a certain threshold have to pay in tax if they do not have private hospital cover.
If you’re in doubt, it may be beneficial to seek advice from a suitably qualified tax professional.
