What factors affect the cost of private health insurance?

The cost of private health insurance depends on a range of factors, including the type of policy, level of cover, who's on the policy, your age, location, income, and more. Each of these influences your premium in different ways.

What is the average cost of private health insurance?

On average, singles pay $84.80–$270.26 per month for Hospital cover and $56.92 for Extras. Couples spend $169.25–$525.20 on Hospital cover and $115.05 on Extras, while families pay $174.23–$541.52 for Hospital cover and $123.69 for Extras, according to Money.com.au analysis.

Which state has the cheapest health insurance?

On average, the Northern Territory has the lowest health insurance premiums in Australia across all tiers of Hospital cover (Basic, Bronze, Silver and Gold) as well as Extras policies. This is based on Money.com.au analysis of Privatehealth.gov.au data, which shows consistently cheaper premiums in the NT compared to other states and territories.

Is private health insurance tax-deductible in Australia?

Private health insurance premiums aren’t tax-deductible in Australia, but you may be eligible for a government rebate based on your income, age, and family status. This rebate can be applied as a discount on your premiums or claimed through your tax return. Eligible Hospital cover can also help you avoid the Medicare Levy Surcharge (MLS), reducing your overall tax bill.

Why do premiums increase every year?

Premiums increase each year due to rising healthcare costs, such as medical technology, wages, and the number of claims. Insurers adjust premiums to continue covering these expenses.

Can I pause my private health insurance to save money?

Some health funds allow you to suspend your policy during financial hardship or overseas travel. Conditions apply, such as holding the policy for 12 months and being up to date with payments. During suspension, you won’t pay premiums or be covered. You’ll keep any waiting periods you've already served. However, suspension may trigger the Medicare Levy Surcharge if you earn above the threshold. Always check your fund’s rules first.

Is it cheaper to pay private health insurance annually or monthly?

The cost is usually the same across payment frequencies, though some funds may offer small incentives for direct debit. Paying annually before 1 April lets you avoid annual premium increases and lock in current rates for 12 months, potentially saving money.

How do waiting periods affect the cost of health insurance?

Waiting periods don’t affect the cost of your premium but determine when you can claim. Some policies waive certain waiting periods in sign-up offers, adding extra value and helping you save on early out-of-pocket costs.

Do I need Extras cover, or is Hospital cover enough?

Extras cover helps pay for out-of-hospital services like dental, optical and physio. Whether you need it depends on how often you use these services and how much you would otherwise pay out of pocket.

How much can I expect to pay out of pocket with private health insurance?

Even with insurance, you might pay hospital excesses, specialist gap fees or for services not covered by your policy. Choosing a fund with no-gap arrangements can help minimise these costs.

Which is the cheapest health insurance in Australia?

The cheapest policies are often Basic Hospital or 'Basic – Accident Only' plans with limited coverage. The most affordable Extras policies usually cover basic services like general dental and optical with low annual limits. Always compare based on your needs.

How can I reduce the cost of private health insurance?

You can reduce your premium by: 1) Choosing a higher excess; 2) Selecting a fund with no-gap agreements; 3) Picking a provider with strong networks near you; 4) Switching funds for better deals; 5) Reviewing and tailoring your policy regularly to suit your changing needs.

How Much Does Private Health Insurance Cost in 2025?

How much is private health insurance?

The average private health insurance premiums in Australia are as follows:

Singles

$85–$270 per month for Hospital cover (depending on the tier), or $1,020–$3,240 per year.

$57 per month for Extras cover, or $684 per year.

Couples

$169–$525 per month for Hospital cover (depending on the tier), or $2,028–$6,300 per year.

$115 per month for Extras cover, or $1,380 per year.

Families

$174–$541 per month for Hospital cover (depending on the tier), or $2,088–$6,492 per year.

$124 per month for Extras cover, or $1,488 per year.

These ranges offer a general guide to what you might pay based on your household and cover type. Your actual premium will vary depending on your personal circumstances and where you live. Let's look at the average premiums across Australia.

Tier	Basic Hospital
National	$85
NSW	$92
VIC	$93
QLD	$96
SA	$90
WA	$73
TAS	$92
ACT	$90
NT	$52
Tier	Bronze Hospital
National	$100
NSW	$106
VIC	$112
QLD	$112
SA	$106
WA	$87
TAS	$110
ACT	$109
NT	$69
Tier	Silver Hospital
National	$169
NSW	$174
VIC	$187
QLD	$183
SA	$190
WA	$153
TAS	$175
ACT	$176
NT	$115
Tier	Gold Hospital
National	$270
NSW	$292
VIC	$315
QLD	$306
SA	$259
WA	$247
TAS	$278
ACT	$292
NT	$173
Tier	Extras cover
National	$57
NSW	$60
VIC	$58
QLD	$58
SA	$57
WA	$54
TAS	$54
ACT	$60
NT	$53

Tier	National	NSW	VIC	QLD	SA	WA	TAS	ACT	NT
Basic Hospital	$85	$92	$93	$96	$90	$73	$92	$90	$52
Bronze Hospital	$100	$106	$112	$112	$106	$87	$110	$109	$69
Silver Hospital	$169	$174	$187	$183	$190	$153	$175	$176	$115
Gold Hospital	$270	$292	$315	$306	$259	$247	$278	$292	$173
Extras cover	$57	$60	$58	$58	$57	$54	$54	$60	$53

Source: Privatehealth.gov.au. Average premiums are based on a single person aged 31-64 claiming the maximum government rebate for FY2025/26. Averages assume no lifetime health cover loading and no age-based discount. Always compare policies based on your personal circumstances.

Tier	Basic Hospital
National	$169
NSW	$184
VIC	$189
QLD	$192
SA	$170
WA	$147
TAS	$185
ACT	$184
NT	$104
Tier	Bronze Hospital
National	$208
NSW	$217
VIC	$236
QLD	$231
SA	$218
WA	$180
TAS	$225
ACT	$217
NT	$142
Tier	Silver Hospital
National	$339
NSW	354
VIC	$374
QLD	$368
SA	$340
WA	$318
TAS	$346
ACT	$354
NT	$255
Tier	Gold Hospital
National	$525
NSW	$566
VIC	$610
QLD	$593
SA	$503
WA	$480
TAS	$548
ACT	$566
NT	$337
Tier	Extras cover
National	$115
NSW	$120
VIC	$117
QLD	$115
SA	$127
WA	$116
TAS	$107
ACT	$120
NT	$101

Tier	National	NSW	VIC	QLD	SA	WA	TAS	ACT	NT
Basic Hospital	$169	$184	$189	$192	$170	$147	$185	$184	$104
Bronze Hospital	$208	$217	$236	$231	$218	$180	$225	$217	$142
Silver Hospital	$339	354	$374	$368	$340	$318	$346	$354	$255
Gold Hospital	$525	$566	$610	$593	$503	$480	$548	$566	$337
Extras cover	$115	$120	$117	$115	$127	$116	$107	$120	$101

Source: Privatehealth.gov.au. Average premiums are based on a couple with both partners aged 31-64 claiming the maximum government rebate for FY2025/26 based on household income. Averages assume no lifetime health cover loading and no age-based discount. Always compare policies based on your personal circumstances.

Tier	Basic Hospital
National	$174
NSW	$188
VIC	$192
QLD	$198
SA	$184
WA	$150
TAS	$187
ACT	$188
NT	$105
Tier	Bronze Hospital
National	$208
NSW	$215
VIC	$232
QLD	$236
SA	$221
WA	$175
TAS	$222
ACT	$215
NT	$151
Tier	Silver Hospital
National	$341
NSW	$357
VIC	$378
QLD	$371
SA	$341
WA	$322
TAS	$344
ACT	$357
NT	$263
Tier	Gold Hospital
National	$542
NSW	$579
VIC	$646
QLD	$607
SA	$526
WA	$501
TAS	$551
ACT	$579
NT	$346
Tier	Extras cover
National	$124
NSW	$130
VIC	$127
QLD	$124
SA	$126
WA	$120
TAS	$116
ACT	$130
NT	$109

Tier	National	NSW	VIC	QLD	SA	WA	TAS	ACT	NT
Basic Hospital	$174	$188	$192	$198	$184	$150	$187	$188	$105
Bronze Hospital	$208	$215	$232	$236	$221	$175	$222	$215	$151
Silver Hospital	$341	$357	$378	$371	$341	$322	$344	$357	$263
Gold Hospital	$542	$579	$646	$607	$526	$501	$551	$579	$346
Extras cover	$124	$130	$127	$124	$126	$120	$116	$130	$109

Source: Privatehealth.gov.au. Average premiums are based on a family of two adults with two dependent children under 18 years, claiming the maximum government rebate for FY2025/26 based on household income. Averages assume no lifetime health cover loading and no age-based discount. Always compare policies based on your personal circumstances.

A recent Money.com.au survey revealed that 80% of Australians without private health insurance see cost as the biggest barrier to getting cover. Among those who do have health insurance, 14% say their monthly premiums are the bills they dread most. Half of all respondents believe making private health insurance more affordable is one of the most urgent improvements needed in Australia’s healthcare system.

Here are the main factors that’ll influence what you pay for private health cover:

Type of policy (Hospital-only, Extras-only or both)

Hospital-only cover is usually more expensive than Extras-only. Choosing both increases your premium but gives broader coverage. The more comprehensive your cover, the more you’ll pay, but it can reduce your out-of-pocket costs when you need treatment.

Who’s on the policy?

Policies for couples, families or single parents generally cost more than singles cover because they include multiple people. Adding dependants increases premiums, though some insurers allow children to stay on a family policy up to the age of 31.

Level of cover

The tiered system – Basic, Bronze, Silver and Gold – applies to Hospital cover only, with each tier offering a broader range of services and higher premiums. Extras cover isn’t tiered but varies in cost depending on the number and type of services included (i.e. dental and optical).

Age

Health funds must charge the same premium regardless of age. However, people aged 18–29 may receive age-based discounts on eligible Hospital policies, while older Australians aged 65 and over may receive a higher private health insurance rebate if they meet the income thresholds.

Lifetime health cover (LHC) loading

If you take out Hospital cover after 1 July following your 31st birthday, a 2% loading is added to your premium for every year you delay. This Lifetime Health Cover (LHC) loading can increase your premium by up to 70% and lasts for 10 years.

Location

Health insurance prices can vary by state or territory. Some regions have higher hospital costs or more limited provider networks, which insurers factor into premiums. Metropolitan areas may have more competition, while rural areas might see higher prices for similar cover.

Excess

Choosing a higher excess – the amount you agree to pay when claiming – usually lowers your monthly premium. A lower excess gives you more cover upfront but increases your monthly premium. It's a trade-off between affordability and out-of-pocket expenses.

Provider networks

Some insurers have agreements with specific hospitals or Extras providers. Using in-network providers can reduce or eliminate out-of-pocket costs. Policies with broader or unrestricted provider access may come with higher premiums due to greater flexibility and convenience.

Sign-up offers

Many insurers offer discounts, waived waiting periods, or free weeks to attract new members. These sign-up deals can reduce your upfront costs, but most are time-limited and may not apply after the first few months or year of the policy.

Income

The private health insurance rebate reduces your premium if you earn under a certain income threshold. Higher-income earners receive a smaller rebate or none at all. The rebate is applied directly to your premium or claimed through your tax return.

How the Private Health Insurance Rebate can reduce your costs

The Australian Government offers a private health insurance rebate to make premiums more affordable for eligible individuals and families. The rebate amount depends on your income, age and family status.

Below are the private health insurance rebate tiers for premiums paid between 1 July 2025 and 31 March 2026:

Single income	$101,000 or less
Rebate %	24.288% for under 65s 28.337% for ages 65-69 32.385% for ages 70+
Single income	101,001 - $118,000
Rebate %	16.192% for under 65s 20.240% for ages 65-69 24.288% for ages 70+
Single income	$118,001 - $158,000
Rebate %	8.095% for under 65s 12.143% for ages 65-69 16.192% for ages 70+
Single income	$158,001+
Rebate %	Not eligible

Single income	Rebate %
$101,000 or less	24.288% for under 65s 28.337% for ages 65-69 32.385% for ages 70+
101,001 - $118,000	16.192% for under 65s 20.240% for ages 65-69 24.288% for ages 70+
$118,001 - $158,000	8.095% for under 65s 12.143% for ages 65-69 16.192% for ages 70+
$158,001+	Not eligible

Family income	$202,000 or less
Rebate %	24.288% for under 65s 28.337% for ages 65-69 32.385% for ages 70+
Family income	$202,001 - $236,000
Rebate %	16.192% for under 65s 20.240% for ages 65-69 24.288% for ages 70+
Family income	$236,001 - $316,000
Rebate %	8.095% for under 65s 12.143% for ages 65-69 16.192% for ages 70+
Family income	$316,001+
Rebate %	Not eligible

Family income	Rebate %
$202,000 or less	24.288% for under 65s 28.337% for ages 65-69 32.385% for ages 70+
$202,001 - $236,000	16.192% for under 65s 20.240% for ages 65-69 24.288% for ages 70+
$236,001 - $316,000	8.095% for under 65s 12.143% for ages 65-69 16.192% for ages 70+
$316,001+	Not eligible

The cheapest private health insurance policies are generally Basic Hospital cover or “Basic – Accident Only” policies. These meet the legal requirements for private health cover but offer limited benefits – usually only covering treatment as a private patient after an accident or in a restricted range of services.

For Extras, the most affordable options are low-tier policies that cover only a small number of services, such as general dental, optical or physio. These plans typically come with lower annual limits and fewer inclusions, but they can suit people looking for minimal cover at a lower cost.

The table below shows some of the cheapest health insurance policies from a range of health funds. Keep in mind the costs are for a single in NSW earning less than $101,000 per year with a $750 excess.

Health fund	HIF
Hospital policy cost per month	Basic: $69. Bronze: $84 Silver: $112 Gold: $236
Extras policy cost per month	Low: $26 Mid: $49.70 Top: $98.39
Health fund	Frank Health Insurance
Hospital policy cost per month	Basic: $79 Bronze: $95 Silver: $121 Gold: $286
Extras policy cost per month	Low: $15 Mid: $36 Top: $66
Health fund	HBF
Hospital policy cost per month	Basic: $80 Bronze: $103 Silver: $130 Gold: $283.73
Extras policy cost per month	Low: $20 Mid: $37 Top: $67
Health fund	ahm
Hospital policy cost per month	Basic: $80 Bronze: $90 Silver: $116 Gold: $318
Extras policy cost per month	Low: $13 Mid: $43 Top: $96
Health fund	Medibank
Hospital policy cost per month	Basic: $80 Bronze: $93 Silver: $117 Gold: $268
Extras policy cost per month	Low: $15 Mid: $43 Top: $58
Health fund	nib
Hospital policy cost per month	Basic: $80 Bronze: $94 Silver: $127 Gold: None offered
Extras policy cost per month	Low: $15 Mid: $38 Top: $83
Health fund	Bupa**
Hospital policy cost per month	Basic: $81 Bronze: $94 Silver: $116 Gold: $280
Extras policy cost per month	Low: $12 Mid: $34 Top: $102
Health fund	HCF
Hospital policy cost per month	Basic: $83 Bronze: $97 Silver: $120 Gold: $332
Extras policy cost per month	Low: $13 Mid: $36 Top: $84
Health fund	GMHBA
Hospital policy cost per month	Basic: $83 Bronze: $98 Silver: $123 Gold: $283
Extras policy cost per month	Low: $21.95 Mid: $45.85 Top: $75.40
Health fund	Health Partners
Hospital policy cost per month	Basic: $88 Bronze: $105 Silver: $132 Gold: $289
Extras policy cost per month	Low: $53 Mid: $73 Top: $104

Health fund	Hospital policy cost per month	Extras policy cost per month
HIF	Basic: $69. Bronze: $84 Silver: $112 Gold: $236	Low: $26 Mid: $49.70 Top: $98.39
Frank Health Insurance	Basic: $79 Bronze: $95 Silver: $121 Gold: $286	Low: $15 Mid: $36 Top: $66
HBF	Basic: $80 Bronze: $103 Silver: $130 Gold: $283.73	Low: $20 Mid: $37 Top: $67
ahm	Basic: $80 Bronze: $90 Silver: $116 Gold: $318	Low: $13 Mid: $43 Top: $96
Medibank	Basic: $80 Bronze: $93 Silver: $117 Gold: $268	Low: $15 Mid: $43 Top: $58
nib	Basic: $80 Bronze: $94 Silver: $127 Gold: None offered	Low: $15 Mid: $38 Top: $83
Bupa**	Basic: $81 Bronze: $94 Silver: $116 Gold: $280	Low: $12 Mid: $34 Top: $102
HCF	Basic: $83 Bronze: $97 Silver: $120 Gold: $332	Low: $13 Mid: $36 Top: $84
GMHBA	Basic: $83 Bronze: $98 Silver: $123 Gold: $283	Low: $21.95 Mid: $45.85 Top: $75.40
Health Partners	Basic: $88 Bronze: $105 Silver: $132 Gold: $289	Low: $53 Mid: $73 Top: $104

Note, this cost comparison is a guide only, based on the criteria outlined above. We have chosen the lowest-cost Hospital policy from each provider, typically a “Basic Accident Only” policy. In some cases price differences may reflect varying levels of cover (Low vs Mid vs Top Extras). Premiums include the maximum available government rebate, assume a $750 excess, no LCH loading or age-based discount and may include other special offers offered by the provider. These policies may not be suitable for you – please see the relevant Product Disclosure Statement to see what is covered. Not all providers in the market are reflected in the comparison. The table is sorted by the lowest Hospital premium. Pricing is accurate as of 9 July 2025.

Weighing up cost against cover

Chris Whitelaw General Manager Health Insurance Money.com.au

Chris Whitelaw, General Manager – Health Insurance at Money.com.au

“Cost is often the first thing people consider when choosing health insurance, but the true value comes from the balance between price and meaningful coverage. Paying a bit more in premiums can save significant expenses and stress down the track when unexpected health issues arise. You also need to consider the big moments in life – whether pregnancy is on the cards, a joint replacement, or cataract surgery.”

Chris Whitelaw, General Manager – Health Insurance at Money.com.au

The changing costs of health insurance – one family’s story

Money.com.au’s Senior Finance Writer, Jared Mullane, shares his personal experience with private health insurance premiums over the years.

Years ago, my partner and I had a couples policy covering both Hospital and Extras. Our main goal? To dodge the Medicare Levy Surcharge (MLS) and claim a few basic benefits on general dental and optical. Nothing fancy – just the essentials. Our premiums were pretty modest, around $160 a month.

1

Choose a higher excess

Choosing a higher excess – the amount you pay if you're admitted to hospital – can significantly reduce your monthly premium. Most health funds offer standard excess options such as $500 or $750 for singles (or up to $1,500 for couples and families). Just be sure to pick an amount you could comfortably afford to pay if you need to make a hospital claim.

2

Pick a health fund with “no-gap” arrangements

Some health funds have no-gap or known-gap schemes with certain doctors and hospitals. This means you won’t be left with unexpected out-of-pocket costs for in-hospital treatments, helping you get better value from your cover.

3

Look for funds with strong provider networks in your area

Choosing a health fund with a wide network of hospitals and Extras providers near you can mean no or low gap fees – especially for common services like dental, physio and optical.

4

Don’t be afraid to switch funds

If your current policy no longer meets your needs or seems too expensive, shop around. Many funds offer sign-up deals, and switching is easier than most people think. Plus, you won’t have to re-serve waiting periods for the same level of cover.

5

Review and tailor your policy regularly

Your health needs change over time, and so should your cover. Remove any Extras or Hospital services you no longer need, or downgrade tiers if you’re no longer using high-level cover – it could save you hundreds each year.

How Much Does Private Health Insurance Cost?