HEALTH INSURANCE
Health insurance with no waiting period
By Sean Callery
How Australians decide on the best health fund for them
Money.com.au asked 1,000 Australians about their approach to deciding on the best health insurance.
A third of respondents (33.7%) said they check reviews sometimes, usually when they’re unsure about a health fund. A quarter (25%) said they always check reviews before signing up. Nearly another quarter (24.7%) reported that they stick with the same fund out of habit, while 16.6% rely on comparison websites or word of mouth.
Best health insurance in Australia
The best private health insurance policy will be different depending on who the policy is for and what they value in their cover. But to give you an idea of how various providers compare, we’ve rounded up the top health funds in Australia based on a selection of factors that matter to consumers.
Note, the tables below are based on all open health funds in Australia (those available to anyone). Some of the funds shown are not part of Money.com.au's partner insurer panel. Also bear in mind that no single indicator should be used as a measure of an insurer’s overall performance.
Best health funds for customer loyalty
Small, not-for-profit health fund, Onemedifund, performs best when it comes to customer loyalty, with over 93% of its members staying with the fund for more than two years.
| Health fund | Member retention (hospital cover) |
|---|---|
Onemedifund | 93.4% |
Mildura District Hospital Fund | 90.7% |
Health Partners | 89.9% |
Hunter Health Insurance | 89.2% |
HBF Health | 88.9% |
Best health funds for paying benefits
Australia’s largest not-for-profit health insurer, HCF, comes out on top as the fund that pays the highest percentage of members’ premiums back in claims.
| Health fund | Benefits as % of contributions |
|---|---|
HCF | 89.0% |
AIA Health | 88.0% |
Medibank | 84.9% |
Health Partners | 84.3% |
HBF Health | 83.6% |
Best health funds for covering Hospital costs
Newcastle-based Hunter Health Insurance is the fund that covers the highest portion of private hospital bills for its customers on average.
| Health fund | % Hospital related charges covered |
|---|---|
Hunter Health Insurance | 94.2% |
HBF Health Ltd | 93.1% |
Onemedifund | 92.5% |
Health Partners | 92.3% |
HCI (Health Care Insurance Ltd) | 91.0% |
Best health funds for covering Extras
Major fund, NIB, performs best for covering the highest percentage of dental, physio, optical and other Extras costs on average.
| Health fund | % Extras charges covered |
|---|---|
NIB Health Funds | 57.5% |
Health Partners | 56.5% |
St Lukes Health | 55.5% |
Phoenix Health Fund | 53.6% |
Mildura District Hospital Fund | 53.2% |
Best health insurance provider based on customer reviews
RT Health, Queensland Country Health Fund (owned by HBF) and Phoenix Health jointly have the best overall customer review ratings among health insurers in Australia.
| Health fund | Customer rating |
|---|---|
RT Health | 4.9 (1,391 reviews) |
Queensland Country Health Fund | 4.9 (465 reviews) |
Phoenix Health Fund | 4.9 (430 reviews) |
AIA Health Insurance | 4.7 (1,277 reviews) |
Westfund Health Insurance | 4.5 (425 reviews) |
Health funds with fewest complaints relative to size
Western Australia-based major insurer, HBF, stands out as the health fund in Australia with the lowest proportion of customer complaints relative to its overall market share.
| Full Name | Complaints Share | Market Share |
|---|---|---|
HBF Health | 2.2% | 8.1% |
Mildura District Hospital Fund | 0.1% | 0.3% |
GMHBA | 0.9% | 2.2% |
Peoplecare Health Insurance | 0.2% | 0.4% |
Phoenix Health Fund | 0.1% | 0.2% |
Best health insurance for new customer incentives
Larger funds tend to top the list when it comes to bonus offers for new customers, but offers change frequently and tend to be most competitive around March and April each year.
| Health fund | Current incentive |
|---|---|
HBF | Up to 14 weeks free |
Medibank | Up to 10 weeks free |
Health Partners | 8 weeks free |
Australian Unity | Up to 8 weeks free |
ahm | 6 weeks free |
What’s the best health insurance option overall?
As the tables above demonstrate, different health insurers perform best in different categories. So the unsatisfactory, but honest, answer to the question is that there is no single best health insurance fund or option in Australia.
There will, however, be a best option for each individual. Whether you get expert help or compare health insurance providers yourself, it’s important to not be swayed by any single factor (a sign up offer, the cheapest premium, the insurer your parents use).
To help guide your decision, here are the factors we think matter most when you’re deciding which policy will be best:
How to find the best health insurance policy
- Inclusions: At a basic level, it’s important to find a health insurance policy that covers what you need it to, both now and in the future. Pay close attention to what conditions are covered and what’s excluded
- Limits: Particularly on Extras cover, there will likely be annual limits on how much you can claim for a particular treatment category. The limits on your policy could well impact how much you can get back in benefits and the value you get from your policy, so it’s important to check these carefully.
- Premiums: This is simply the cost of your health insurance. When comparing health insurance premiums, make sure you’re looking at policies that are at the same level. A cheaper policy on the face of it may simply have less comprehensive cover. It’s worth looking out for health insurance sign up offers that could save you money on your premiums.
- Excess level: Depending on the policy and your insurer you may have the ability to change the excess that applies to Hospital policies. This is the amount you need to pay out of pocket when you make a claim. Having a higher excess (up to a maximum of $750 per person) will make your premium cheaper.
- Extra perks: Most insurers offer additional services and perks, like health and wellbeing programs, rewards programs and discounts at partner brands (e.g. gyms and certain retailers). Some providers waive waiting periods on Extras as a perk for new customers.
- Customer service: Checking online reviews can be a good way of getting an idea of the level of service a provider offers its customers. Being with a provider that offers a wide range of communication methods (phone, website, app etc.) can be a benefit too.
Best-selling health insurance policies in Australia
If you’re really not sure where to start, the data shows most Australians choose a combined Hospital and Extras policy, with mid-range Hospital cover.
According to data from the Private Health Insurance Intermediaries Association, in the last year:
- 76.3% of all policies sold were combined cover (Hospital + Extras)
- 13.0% were Hospital-only
- 10.6% were Extras-only
- Silver Plus was the most popular Hospital tier (32.1%)
- Bronze Plus was the second most popular choice overall (29.5%) and the most common option for those getting cover for the first time
- Gold tier policies made up just 2% of all Hospital policy sales, with those aged 30-34 the most likely to purchase the top level of cover (likely due in part to the pregnancy and birth cover included which could suit this age group)
