How much does private health insurance cost?
Explore how much private health insurance costs on average in Australia and see how your policy compares.
Key points:
- The average annual cost of combined hospital and extras health insurance for singles is $3,017 for those under 36, $3,456 for those between 36 to 59, and $3,829 for those aged 60 and over.
- The average annual cost of hospital-only health insurance for singles is $2,257 for those under 36, $2,713 for people between 36 to 59, and $3,076 for those aged 60 and over.
- The average annual cost of extras-only health insurance for singles is $877 for lower level of coverage, $1,046 for mid level coverage, and $1,157 for higher level of coverage.
The cost of private health insurance will depend on different factors such as the fund you choose, the policy you select, your family group (how many people are being insured) and the state you live in.
As part of Canstar’s Health Insurance Star Ratings and Awards, our expert researchers assessed the cost and features of policies and providers all across Australia. From the extensive research, Canstar is able to provide the average cost of health insurance in Australia based on policies on our database. We’ve considered different life stages ranging from young to mature, as well as those looking for pregnancy and birth cover.
Below we’ve broken it down by combined hospitals and extras, hospital only, and extras only policies.
How much does health insurance cost?
The average cost of combined hospital and extras health insurance for a single person is:
- ‘young person’ under 36 years old – $3,017 a year (about $251/mth)
- ‘established person’ between 36 and 59 – $3,456 a year (about $288/mth)
- ‘mature person’ aged 60-plus – $3,829 a year (about $319/mth).
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 government to help cover the cost of your premiums. The rebate is income tested and different thresholds apply depending on whether you are single or a family.
The data below visualises the average cost of hospital and extras health insurance policies, based across the different life stages in Australia. The calculation only considered a lower level of extras cover.
Keep in mind that these costs are an average of policy costs across Australia, and provide only a general guide of what costs might be for those looking for a lower level of cover for both hospital and extras. Your location, personal circumstances, fund, level of cover you choose, and many other factors will impact the cost of a policy. To obtain an estimate closer to your requirements, you can use Canstar’s health comparison tool and change the filters to suit your situation.
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Canstar may earn a fee for referrals from its website tables, and from Sponsorship or Promotion of certain products. Fees payable by product providers for referrals and Sponsorship or Promotion may vary between providers, website position, and revenue model. Sponsorship or Promotion fees may be higher than referral fees. Sponsored or Promoted products are clearly disclosed as such on website pages. They may appear in a number of areas of the website such as in comparison tables, on hub pages and in articles. Sponsored or Promoted products may be displayed in a fixed position in a table, regardless of the product’s rating, price or other attributes. The table position of a Sponsored or Promoted product does not indicate any ranking or rating by Canstar. For more information please see How We Get Paid.
What does hospital-only cover cost?
The average annual cost of hospital-only cover for a single person is:
- ‘young person’ under 36 years old – $2,257 a year (about $188/mth)
- ‘established person’ between 36 and 59 – $2,713 a year (about $226/mth)
- ‘mature person’ aged 60-plus – $3,076 a year (about $256/mth)
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, with Basic policies providing the lowest level of cover and Gold policies the highest. Providers can also offer ‘Plus policies (excluding Gold), which provide extra cover above the minimum standards.
The 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.
Here’s a closer look at how much a hospital policy may cost you depending on your lifestage 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 for heart and vascular treatment as well as joint replacements.
Compare Health Insurance (Hospital and Extras) with Canstar
The table below displays some of our referral partners’ hospital and extras policies for a 39-year-old single female seeking cover in NSW without pregnancy cover. The table is sorted by Star Rating (highest to lowest) followed by provider name (alphabetical). Use Canstar’s health insurance comparison selector to view a wider range of products. Canstar may earn a fee for referrals.
Products displayed above that are not “Sponsored or Promoted” are sorted as referenced in the introductory text to the table. Canstar may receive a fee for referral of leads from these products. See How We Get Paid for further information. If you decide to apply for health insurance, you will deal directly with an insurance provider, and not with Canstar.
Consider the provider’s detailed product and pricing information before making a decision to purchase a policy. The products displayed on this page do not include all providers and may not compare all features relevant to you. View the Canstar Health Insurance Star Ratings Methodology and Report. The rating shown is only one factor to take into account when considering products.
For more information, read our detailed disclosure, important notes and additional information.
What does extras-only cover cost?
The average annual cost of extras-only cover for a single person is:
- lower level of coverage – $877 a year (about $73/mth)
- mid level of coverage – $1,046 a year (about $87/mth)
- higher level of coverage – $1,157 a year (about $96/mth).
The cost of extras insurance can vary depending on the types of inclusions you want. As there is no standard tiers for extras-only insurance, Canstar has broken it down into three different tiers. Tier 1 represents a lower amount of coverage, while Tier 3 represents a higher amount of coverage. These are further defined in our Health Insurance Star Ratings methodology.
Here’s the average cost of an extras policy for singles, couples and families, based on the three different levels of cover.
Source: www.canstar.com.au – 03/04/2023. Based on standalone hospital insurance policies on Canstar’s database. Overseas student health cover (OSHC), visitor and corporate policies, as well as policies from restricted funds, are excluded. The Australian Government Private Health Insurance Rebate, Base Tier for under 65s, of 24.608% has been applied to premiums. 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.
Learn more about Health Insurance
What’s the difference between private and public hospitals?
The main difference between private and public hospitals mainly comes down to choice, where private patients have more say in their care, such as being able to choose their own doctors and treatment.
Learn more: Private vs public hospitals – What’s the difference?
What is an extras-only cover?
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.
Explore further: Extras-Only Health Policies
Can I switch my health insurance?
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 insurer, your new health insurance 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 insurer.
Learn more: Switching health insurance: How to change providers?
Can I suspend my health insurance policy?
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 insurance policy.
Learn more: Can I suspend my health insurance policy?
What should I consider when comparing private health insurance?
When comparing health insurance policies there’re 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 is 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 health insurance policy:
- What health insurance 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?
Are there any tax benefits for those with private health insurance?
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 the private health insurance 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 during tax time if they do not have health insurance cover.
If you’re in doubt, it may be beneficial to seek advice from a suitably qualified taxation professional.
Explore further: Private health insurance and tax: How does it work?
Cover image source: Ground Picture/Shutterstock.com
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This article was reviewed by our Deputy Editor, Canstar Amanda Horswill before it was updated, as part of our fact-checking process.
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