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Health Insurance Costs Explained
What should I compare when considering private health insurance?
When comparing health insurance policies, you should start by looking at hospital cover or other healthcare policy factors that are important to you. The level of cover that is best for you will typically be determined by your situation in life. For example, you may need a policy that covers an existing medical condition, or a policy that includes obstetrics if planning for a pregnancy. Here are some health insurance policy questions worth considering:
- What health insurance life stage are you at? Are you single, a single parent, a couple, or part of a larger family?
- Do you want extras cover? What health services do you need now? What might you need in the future?
- Do you or your family have any pre-existing conditions to be included in the cover? Select an insurance product that targets your specific medical needs.
- What is your budget for monthly premiums for medical care? You can always start with lower premiums and move to higher premiums at a later date.
Health insurance cost according to age
Private health insurance premiums are affected by many factors, including age. The differences in price across age groups for health insurance are based on assumed levels of health coverage, with people in the older age brackets more likely to have comprehensive private hospital insurance.
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Combined health insurance cost
Health insurance offers peace of mind at every stage of life. Combined monthly premiums can cover medical costs, private patient hospital care, out-of-pocket costs, and other health care costs. GoSwitch will help you make an informed decision every step of the way.
Extras-only cover cost
Health insurance companies offer extras-only coverage as an alternative to comprehensive medical insurance. Extras-only can be the right option for specialist treatments such as dental work or ongoing physiotherapy support.
The cost of extras insurance can vary depending on your health status and the types of inclusions you want as there are no standard tiers for extras-only insurance.
Tax benefits for those with private health insurance
The Federal Government offers tax incentives for Australians with private health cover. The two that may impact your tax return are:
- Private health insurance rebate: If you have private health insurance, this government rebate may contribute towards your premiums.
- Medicare Levy Surcharge: The MLS is an amount that taxpayers without health insurance may have to pay during tax time.
Understanding Health Insurance Costs in a Nutshell
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Premiums
The most obvious cost associated with health insurance is the premium. Health insurance premiums vary significantly depending on factors such as age, location, level of coverage, and the insurer's pricing structure. -
Coverage and Benefits
The level of coverage you choose will impact the cost of your health insurance. Basic policies generally have lower premiums but offer limited coverage, while comprehensive policies with broader coverage come with higher premiums. -
Extras Coverage
Extras coverage includes dental, optical, and physiotherapy. It also pays for some treatment costs that Medicare does not cover. The inclusion of extras coverage in your health insurance policy will affect the overall cost. -
Excess and Co-payments
Excess is the amount you agree to pay before your health insurance covers the remaining expenses. Opting for a higher excess can lower your premium but may incur higher out-of-pocket costs. Co-payments are additional fees you may need to pay for services such as doctor visits or prescription medications. -
Lifetime Health Cover Loading
This government initiative is designed to encourage Australians to take out private health insurance earlier in life. LHC increases the cost of health insurance premiums by 2% for every year you are aged over 30. -
Government Rebate
The Australian government provides a rebate to help make private health insurance more affordable. The rebate amount is income-tested. Higher-income earners receive lower or no rebates, while those on lower incomes receive higher rebates. -
Waiting Periods
When you first take out health insurance or switch to a higher level of coverage, waiting periods may apply before certain services can be claimed. Waiting periods don't directly affect the cost of health insurance but can impact your access to benefits. It's important to assess your healthcare needs, consider your budget, and compare policies from different insurers to find the right healthcare balance for you. Remember to review your policy regularly and make adjustments as your circumstances change.
Can I switch my health insurance?
If you are unhappy with your current health insurance policy or want a change that suits your income threshold, you can switch your insurance provider or cover. Your new health insurance provider can typically handle much of the transfer. GoSwitch can help you find the best policy for your situation quickly and easily with our health insurance comparison tool. A price comparison takes only a few minutes to complete.
The GoSwitch service includes advice from professionals specialising in private health insurance. If you have any questions, they have the answers. GoSwitch lets you find, compare, and buy medical coverage all in one convenient location. We’re here to help you every step of the way.
GoSwitch for private health insurance
If you prefer receiving medical care as a private patient, having private hospital insurance can help you manage your finances. By opting for personal cover, you can choose your physician, enjoy the comfort of a private room, and avoid lengthy public hospital wait times. GoSwitch is your go-to contact for the best health insurance cover from leading Australian healthcare providers.
FAQs
What is the best health cover in Australia?
The best health cover depends on your individual needs and the insurance premiums (cost) and excess required to pay when making a hospital claim. Some health insurance products might be great for families, while others are better suited to seniors, singles or couples. GoSwitch can help you compare different policies to find the perfect fit for you.
How much does private health insurance cost?
The cost of private health insurance varies depending on your age, the level of cover, and the for-profit health fund you go with. Some funds offer basic cover for a few hundred dollars a year, while others can cost a few thousand. It’s always best to compare different health funds and policies with GoSwitch to find the one that suits your budget and needs.
How do I get two private health insurance policies?
You can split your health cover between two providers if you prefer. This could mean having hospital cover with one insurer and extras cover with another. GoSwitch can help you compare and combine different hospital policies to find the right mix for you.
Does private health insurance cover dental services?
Dental coverage depends on your specific policy and level of extras cover. Many policies cover routine checkups and basic treatments, while some also cover major dental work like orthodontics. Use GoSwitch to compare policies and see what’s included in each.
What is the best health insurance company to go with?
The best health insurance company for you will depend on your individual needs and the specific health services you’re looking for. Some companies excel in hospital cover, while others offer better value for extras. GoSwitch makes it easy to compare different companies and their offerings so you can find the one that’s right for you.