The cost of health insurance in Australia varies depending on several factors, such as the level of coverage, your age, and the insurer you choose. Below is an overview of the average costs associated with health insurance in Australia.
How Much Does Health Insurance Cost in Australia
Table of Contents
1. Private Health Insurance Costs
Hospital Cover
Hospital cover helps with the costs of staying in a private hospital and treatment by private doctors. The price for hospital cover can range widely depending on the type of policy (basic, medium, or top-level cover).
| Type of Cover | Average Monthly Cost | Average Annual Cost |
|---|---|---|
| Basic Cover | $50 – $80 | $600 – $960 |
| Medium Cover | $90 – $150 | $1,080 – $1,800 |
| Top Cover | $180 – $300 | $2,160 – $3,600 |
- Basic Cover: Covers essential services such as shared hospital accommodation and some surgeries.
- Medium Cover: Adds coverage for more treatments, including some non-emergency surgeries and more choice in hospitals.
- Top Cover: Provides extensive coverage, including a wider range of treatments, private hospital rooms, and a greater level of choice in medical specialists.
Extras Cover (Non-Hospital)
Extras cover includes treatment and services not covered by Medicare, such as dental, optical, physiotherapy, and chiropractic services. The cost depends on the level of coverage chosen.
| Type of Cover | Average Monthly Cost | Average Annual Cost |
|---|---|---|
| Basic Extras | $30 – $50 | $360 – $600 |
| Mid-Level Extras | $60 – $90 | $720 – $1,080 |
| Comprehensive Extras | $100 – $150 | $1,200 – $1,800 |
- Basic Extras: Covers essential services like general dental, basic optical, and physiotherapy.
- Mid-Level Extras: Adds more coverage for treatments like major dental work and additional allied health services.
- Comprehensive Extras: Covers a wide range of services, including high-cost treatments like orthodontics, acupuncture, and chiropractic care.
Combined Hospital & Extras Cover
Many Australians choose a combined policy that covers both hospital and extras services.
| Type of Cover | Average Monthly Cost | Average Annual Cost |
|---|---|---|
| Basic Combined Cover | $80 – $120 | $960 – $1,440 |
| Mid-Level Combined Cover | $150 – $220 | $1,800 – $2,640 |
| Top Combined Cover | $250 – $400 | $3,000 – $4,800 |
- Basic Combined Cover: Includes the essentials of both hospital and extras cover, suitable for those looking for basic protection.
- Mid-Level Combined Cover: Offers more comprehensive hospital and extras coverage, ideal for those who need moderate coverage.
- Top Combined Cover: Provides extensive coverage for both hospital and extras services, including more choice and flexibility.
Factors Affecting the Cost of Health Insurance
- Age:
- The older you are, the more expensive your health insurance premiums are likely to be. Younger people typically pay lower premiums, but 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 additional tax incentivizes higher earners to take out private coverage and can increase the cost of not having insurance.
- State/Territory:
- Health insurance premiums can vary slightly based on the state or territory in which you live. This can be due to regional healthcare needs, cost of medical services, and the insurer’s pricing policies.
- Excess:
- The excess is the amount you agree to pay when you make a claim. Policies with higher excesses typically have lower premiums. Conversely, policies with lower excesses tend to have higher premiums.
- Cover Level:
- The more comprehensive your coverage, the higher the cost. Policies that include private hospital stays, specialist treatments, and a wide range of extras will be more expensive than basic cover.
Government Rebate on Private Health Insurance
The Australian Government offers a rebate on private health insurance premiums for those who meet certain criteria. The rebate is based on income and age and helps reduce the cost of premiums.
| Income (for individuals) | Government Rebate |
|---|---|
| Up to $90,000 (singles) | 24.608% |
| $90,001 – $105,000 (singles) | 16.706% |
| $105,001 – $140,000 (singles) | 8.804% |
| Above $140,001 (singles) | No rebate |
| Income (for couples/families) | Government Rebate |
|---|---|
| Up to $180,000 | 24.608% |
| $180,001 – $210,000 | 16.706% |
| $210,001 – $280,000 | 8.804% |
| Above $280,001 | No rebate |
Cost of Health Insurance for Families
For families, the cost of health insurance will depend on the level of coverage, the number of dependents, and the chosen insurer.
| Type of Family Coverage | Average Monthly Cost | Average Annual Cost |
|---|---|---|
| Basic Family Cover | $150 – $250 | $1,800 – $3,000 |
| Mid-Level Family Cover | $250 – $400 | $3,000 – $4,800 |
| Top Family Cover | $400 – $600 | $4,800 – $7,200 |
- Basic Family Cover: Offers essential hospital and extras cover for families with younger children.
- Mid-Level Family Cover: Covers a wider range of medical services, including more extensive extras and a higher level of hospital cover.
- Top Family Cover: Comprehensive cover that includes extensive private hospital stays and a wide range of extras services.
How to Reduce Your Health Insurance Premiums
- Increase Your Excess:
Opting for a higher excess will lower your premiums. However, you’ll need to pay a higher amount out-of-pocket when making a claim. - Use the Government Rebate:
Ensure you claim the government rebate (if eligible) to reduce your premiums. - Compare Providers:
Regularly compare health insurance plans to find the best deal. Switching providers can help reduce costs, especially when insurers offer new customer discounts. - Bundle Insurance:
Some health insurers offer discounts for bundling health insurance with other types of coverage, such as car or home insurance. - Stay Healthy:
Healthy living can reduce the need for medical care, which might lower your health insurance premiums in the long run. Some insurers may even offer discounts for health-conscious individuals.
How Much Does Health Insurance Cost in Australia Conclusion
The cost of health insurance in Australia can vary greatly depending on your individual needs, the type of cover you choose, and your age. On average, premiums range from $50 per month for basic hospital cover to $400+ for top-tier combined policies. Understanding what type of coverage you need, comparing different insurers, and using available government rebates are key to finding affordable health insurance that meets your needs.