Private health insurance premiums can vary significantly depending on the type of coverage, your age, location, and the insurer. If you’re looking for the cheapest private health insurance in Australia, you generally want to focus on basic hospital cover or extras cover, as these are often the most affordable options. Below is a breakdown of some affordable choices for health insurance in Australia.
Cheapest Private Health Insurance in Australia
Table of Contents
1. Basic Hospital Cover
Basic hospital cover is the most affordable option for those looking for private health insurance. It usually covers essential hospital services, such as treatment in a public hospital and some procedures in private hospitals, but does not provide extensive coverage for extras like dental or optical.
| Insurer | Average Monthly Cost | Coverage Features |
|---|---|---|
| Medibank | $80 – $100 | Includes public hospital stays, emergency services, some surgeries |
| Bupa | $80 – $100 | Covers essential hospital services, some treatments in private hospitals |
| HCF | $70 – $90 | Includes public hospital services, selected private hospital stays |
| AHM | $65 – $85 | Basic hospital cover, with some private hospital treatments |
| Peoplecare | $70 – $90 | Public hospital cover, some access to private hospitals |
- Basic Hospital Cover: These policies are designed to cover emergency and essential treatments. They don’t include comprehensive hospital cover, so it’s a good option for people who want to avoid high premiums.
2. Basic Extras Cover
Extras cover helps with the cost of services not covered by Medicare, such as dental, optical, physiotherapy, and chiropractic treatments. Basic extras cover is cheaper than mid or top-tier policies, but it provides limited coverage.
| Insurer | Average Monthly Cost | Coverage Features |
|---|---|---|
| Medibank | $30 – $50 | General dental, optical, physiotherapy, chiropractic care |
| Bupa | $35 – $50 | Basic dental, optical, and physiotherapy coverage |
| HCF | $30 – $45 | General dental, physiotherapy, some optical |
| AHM | $25 – $40 | Includes general dental, optical, and physiotherapy |
| Peoplecare | $30 – $45 | Covers dental, optical, and some alternative therapies |
- Basic Extras Cover: This covers the most essential non-hospital services, including basic dental care, optical services, and physiotherapy. It’s a good option for people who need only basic treatment.
3. Combined Hospital & Extras Cover
Some Australians prefer a combined policy that includes both hospital and extras cover. A combined policy will offer more comprehensive coverage than just hospital or extras alone, but it’s typically more affordable than top-tier combined policies.
| Insurer | Average Monthly Cost | Coverage Features |
|---|---|---|
| Medibank | $90 – $120 | Public hospital stays, basic extras (dental, optical, physio) |
| Bupa | $95 – $130 | Hospital cover plus general dental, optical, and physiotherapy |
| HCF | $90 – $120 | Public and private hospital services, basic extras cover |
| AHM | $85 – $110 | Includes hospital cover, general dental, optical, and physio |
| Peoplecare | $90 – $120 | Basic hospital cover with extras like dental and optical |
- Combined Cover: These policies offer a balance between hospital care and non-hospital services, but premiums can increase as the level of coverage increases.
4. Factors Affecting the Cost of Health Insurance
- Age: Younger people generally pay lower premiums than older individuals. However, premiums increase as you age.
- Income: Higher-income earners may be subject to the Medicare Levy Surcharge (MLS) if they don’t have private health insurance. This tax can incentivize people to take out cheaper private insurance to avoid the surcharge.
- Excess: By choosing a higher excess, you can lower your monthly premiums. The excess is the amount you agree to pay before the insurance company covers your costs.
- Location: Health insurance costs can vary by state or territory due to differences in medical service costs.
5. Tips for Finding the Cheapest Private Health Insurance in Australia
- Use Comparison Websites: Websites like Compare the Market, Finder, and iSelect allow you to compare health insurance plans from multiple insurers to find the cheapest options.
- Choose a Higher Excess: Opting for a higher excess lowers your premiums. However, you will pay more out-of-pocket if you need to claim.
- Check for Government Rebates: If you are eligible, the government rebate can reduce your premiums. This is available to individuals and families based on income.
- Look for Discounts: Some insurers offer discounts for things like bundling health insurance with other types of insurance or staying with the same insurer for a longer period.
- Review Your Policy Annually: Health insurance needs change, so make sure to review your policy each year and shop around for the best rates.
Cheapest Private Health Insurance in Australia Conclusion
The cheapest private health insurance in Australia typically falls under basic hospital or basic extras cover, with premiums ranging from $65 to $100 per month. If you need both hospital and extras cover, you can expect to pay between $85 and $130 per month for combined policies. Always compare options, adjust your excess, and consider the government rebate to reduce your premiums further.
It’s important to remember that while cheaper insurance may seem attractive, it may come with fewer benefits or higher out-of-pocket costs when you need to make a claim. Make sure the policy you choose meets your needs while remaining affordable.