How much is Private Health Insurance in Australia?

A simple guide to private health insurance costs, what influences the price, and what Australians typically pay

The cost of private health insurance

Private health insurance doesn’t have a single set price in Australia. Instead, costs vary based on the type of cover you choose, who the policy covers, and a range of personal and policy-related factors.
 
Understanding typical price ranges, and what influences them, can help set realistic expectations before comparing or choosing cover.

What’s the average cost of private health insurance?

The cost of private health insurance depends largely on whether the policy includes hospital cover, extras cover, or both.
 
As a general guide:
 
  • Basic hospital cover for a single person often starts from around $100-$150 per month
  • Mid-level hospital cover may range between $150-$250 per month
  • Comprehensive hospital and extras cover for families can exceed $400-$500 per month
Some people also compare costs weekly. On that basis, private health insurance may range from around $25 per week for basic cover to $100 or more per week for higher levels of cover.
 
These figures are indicative only and do not reflect every policy or provider.

What affects the cost of private health insurance?

Across the private health insurance industry, premiums are shaped by several key factors.
 
Level of hospital cover
 
Hospital policies are categorised into tiers – Basic, Bronze, Silver, and Gold – based on which treatments are included or excluded. Higher tiers generally cost more but offer broader coverage and fewer restrictions.
 
Extras versus hospital-only cover
 
Adding extras cover (such as dental, optical, or physiotherapy) increases the overall premium. Hospital-only policies are typically cheaper, but don’t help with everyday health services outside the hospital.
 
Who the policy covers
 
Premiums differ depending on whether the policy is for:
 
  • A single person
  • A couple
  • A family or single-parent family
Family policies cost more overall but are often cheaper per person than holding separate individual policies.
 
Excess and co-payments
 
Policies with higher excesses generally have lower monthly premiums, but higher out-of-pocket costs if a hospital admission occurs. Lower or no excess typically means a higher ongoing premium.

The cost of hospital cover versus extras

Hospital cover usually makes up the largest portion of a private health insurance premium. It applies when someone is admitted to hospital as a private patient and relates to the cost of treatment and accommodation.
 
Extras cover, by contrast, relates to services used outside hospital settings. While extras increase the premium, they may help reduce out-of-pocket expenses for health services some people use regularly.
 
Many people choose cover based on which of these costs they’re more likely to face – occasional hospital admissions, ongoing extras services, or a balance of both.

Why do private health insurance premiums increase?

Private health insurance premiums are reviewed regularly and may rise over time. These increases are influenced by broader system-wide factors rather than individual claim history.
 
Common drivers include:
 
  • Rising healthcare and hospital treatment costs
  • Increased use of medical services across the insured population
  • An ageing population requiring more complex care
  • Changes to healthcare delivery and medical technology
While insurers propose premium changes, increase must be approved by the Australian Government before being applied.

Does where you live affect private health insurance costs?

Yes, cost differences can occur between states and territories.
 
Healthcare costs vary across Australia due to differences in hospital charges, service availability, and patterns of healthcare use. These variations can influence private health insurance premiums, meaning similar cover may cost slightly more or less depending on location.

Want a personalised quote?

Because private health insurance costs vary so widely, a personalised quote can provide a clearer idea of what cover may cost based on individual circumstances.
 
AIA Health offers a range of hospital and extras cover options designed to suit different needs and budgets. Get a quote below to explore your options and see what cover and pricing could look like for you.

Frequently asked questions

Your age can influence how much you pay for private health insurance, but taking out hospital cover earlier can work in your favour. There are two Government initiatives that may impact your premiums, depending on when you get cover:
 
Age-based Discount
 
If you’re aged 18 to 29, you may be eligible for a discount on your hospital cover premiums. Here’s how it works:
 
  • You get 2% off for each year you’re under 30
  • The maximum discount is 10% (for those aged 18-25)
  • You can keep the discount until age 41
  • After 41, it reduces by 2% each year until it reaches zero
Please note, this discount only applies if you hold your own policy. It doesn’t apply if you’re a dependent on a family or single parent policy.
 
Lifetime Health Cover (LHC) loading
 
The Lifetime Health Cover (LHC) loading is designed to encourage people to take out hospital cover before age 31. Here’s how it works:
 
  • If you get hospital cover before turning 31, you can avoid paying a loading later
  • If you take out cover after 31, you may pay an LHC loading on top of your premium
  • As long as you take out cover before turning 31 and maintain it continuously, you won’t need to pay the LHC loading
Getting private hospital cover earlier in life can help make your health insurance more affordable over time. Between potential discounts and avoiding future loadings, a small decision now can lead to meaningful savings later.

Lifetime Health Cover (LHC) loading is an additional cost that can apply to cover if it’s first taken out after age 31 and not held continuously.

The Medicare Levy Surcharge is a tax applied to higher-income earners who do not have eligible hospital cover. It does not change premiums but affects what a person would pay at tax time if they were subject to the Medicare Levy Surcharge.

Whether private health insurance is worth it depends on your personal circumstances, including healthcare needs, income level, and preferences around access and choice.

Some people manage costs by increasing their excess, removing extras they rarely use, or reviewing their cover needs regularly. 

No. Premium changes are generally driven by system-wide factors rather than an individual member’s claiming history.