Cheap health insurance – 5 expert picks

400+ policies reviewed from 40 funds so you can sort your tax bill and your teeth.

Who is this cover for?

Cheap health insurance: top picks

To help you find a cheap policy, our health insurance team has analysed hundreds of policies from over 40 funds, as well as the latest Ombudsman report. We've narrowed it down to a handful of the cheapest and most comprehensive policies in the Australian market.

Why you can trust our research

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400+
policies assessed
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46
health funds analysed
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80+
hours of research
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765
customers surveyed

Cheap award winner

Basic Hospital Plus Elevate $750/$1500 Excess

From

$22.50

/week

Hospital only

From

$22.50

/week

Our verdict

HBF Basic Hospital Plus Elevate is good if you want a cheap policy that gives you more for your money, which is why it won the 2024 Finder Award.

Cheap combined hospital and extras insurance

starter bronze + black 50 saver

From

$25.72

/week

Hospital and Extras

From

$25.72

/week

Our verdict

ahm starter bronze and black 50 saver is good if you want a cheap combined hospital and extras policy. It covers 18 treatments more than a typical basic policy.

Cheap bronze hospital insurance

HCF HOSPITAL BRONZE PLUS $750 EXCESS

From

$22.78

/week

Hospital only

From

$22.78

/week

Our verdict

2024 Finder Award winner for bronze cover. Scores are determined by policies that cover the most treatments for the cheapest price. We looked at 100+ bronze plans in total. You're covered for 25 hospital treatments – 7 more than a standard bronze policy.

Cheap basic hospital insurance

Basic Accident Only Hospital $750 Excess

From

$19.48

/week

Hospital only

From

$19.48

/week

Our verdict

Bupa's Basic Accident Only Hospital policy is good if you're looking for a very cheap policy that lets you avoid paying the Medicare Levy Surcharge (MLS) – but it only covers accidents and ambulance fees.

Cheap family health insurance

Bronze Hospital $750 Excess + Dental Boost

From

$34.32

/week

Hospital and Extras

From

$34.32

/week

How much does health insurance cost?

The cost of private health insurance varies pretty wildly. You can find extras cover from just a few dollars a week, while basic hospital policies will cost you from around $20 per week. However, if you've got more complex health needs, you'll need to go up to a more expensive policy.

The price also rises every year. In 2024 the prices went up 3.03%. This is actually less than the overall cost in insurance, which is around 8%, according to PocketSmith.

That's all very abstract - what are real Aussies paying for health insurance? Well, we ask hundreds of Australians that question every month in the Finder consumer sentiment tracker. Here's what their bill looked like in October 2024.

  • Extras only: $60
  • Basic Hospital: $97
  • Bronze Hospital: $145
  • Silver Hospital: $176
  • Gold Hospital: $210

Price based on 500+ responses for single hospital or extras insurance.

Cheap health insurance for tax

One of the big reasons Aussies take out health insurance is to avoid the financial impact of not having it. The government tries to strong arm you into getting private cover in a couple of ways, but there are 2 big ones.

Medicare Levy Surcharge (MLS): This is an extra tax that you'll pay if you're a high earner that doesn't have hospital cover. Currently the income threshold is $97,000 for singles or $194,000 for couples or families. Mind, this threshold includes super, so you'll likely cross it with a taxable income of around $88,000. The actual tax is between 1 and 1.5% of your total income.

Lifetime Health Cover loading (LHC): This kicks in from the tax year you turn 31. For every year after age 30 that you don't have hospital cover, a 2% loading will be added to the cost of health insurance when you eventually get it. For example, if you wait until age 40 to get cover, you'll pay an extra 20% on the base cost. If you wait until 50, you'll pay an extra 40%!

Avoiding the MLS and LHC with cheap hospital cover

The good news is that you are exempt from both of these extra costs if you take out even a cheap hospital insurance policy. Even a basic or bronze policy is enough - just not extras only. I generally recommend at least a bronze tier policy because it covers way more treatments for just a little bit extra, but you can pick what works best for you.

When is cheap health insurance worth it?

Whether health insurance is worth it is going to be different for everyone. However, there are a couple of reasons you might take out cheap health insurance, where it's definitely still worth considering.

  • To avoid tax impacts: We outlined these earlier in this article. Not having health insurance can make a big impact on your finances, but a cheap hospital policy can protect you.
  • For basic extras cover: If you just want cover for basic extras like dental, optical and physiotherapy, a cheap extras plan is just the ticket.
  • To cover some common treatments: If you don't reckon you need a super comprehensive policy, but you want private cover for some common treatments, you should at least have a look at some cheap bronze tier policies.

Basic vs bronze policies

It's important to know the difference between basic and bronze tier hospital policies. Basic policies are really bare bones. They often don't have any treatments fully covered, so you should consider them the same as not being covered. If you need a cheap policy, we'd recommend at least considering bronze policies. They only cost a little bit more, but offer way more actual coverage.

How can I find cheaper health insurance?

No matter what your budget, these are some universal tips that could help you get more bang for your buck.

  • Check your coverage. If you already have health insurance and are looking for a cheaper option, consider downgrading your policy. You may be paying for benefits you don't need.
  • Compare online. Finder compares almost every major health insurance policy on the market. Comparing your options side-by-side gives you a good idea of how much you can expect to pay for a policy.
  • Look for discounts. Lots of health funds run offers to attract new customers. This could be a reduced-price premium, free coverage for a few weeks or some other reward.
  • Pay before 1 April. Prices go up on 1 April every year. Pay in advance before this date and you'll lock in last year's rates for a while longer.
  • Increase your excess. Choosing a higher excess will lower your premium. Just remember, if you're looking to avoid the Medicare Levy Surcharge or Lifetime Health Cover loading, make sure the excess is no higher than $750 for a single person.
  • Look for a restricted fund. Restricted health funds offer cover to people working in specific industries as well as their families. These funds aren't run for profit, so they can be cheaper, but you have to find one that you're eligible for.
  • Check if your employer partners with a health fund. Health funds are allowed to give discounts of up to 12% to companies, which those companies can then pass on to employees.
Franco Fagioli's headshot

"Last year my first son was born, so getting affordable health insurance with flexible extras became more than just a tax-related priority. Having lived in Australia for only 2 years, I didn't know much about health providers. Finder's selection of best insurance gave me the confidence to check HBF. HBF's Bronze Hospital Plus with Flex 50 extras had everything I was looking for!"

Franco Fagioli
New parent, NSW

Frequently asked questions

Angus Kidman's headshot
To make sure you get accurate and helpful information, this guide has been edited by Angus Kidman as part of our fact-checking process.
Tim Bennett's headshot
Written by

Insurance expert

Tim Bennett is a Finder insurance & utilities expert. For over 10 years he's reported on news, politics, finance and other topics as a journalist and radio presenter. Tim's roles have included radio news reader and breakfast at the ABC, news producer for SBS and producer for Fairfax Media. Tim regularly appears as a health insurance expert on programs like Sunrise and SBS news, as well as in the Australian, The Daily Telegraph, The Courier Mail and more. See full bio

Tim's expertise
Tim has written 121 Finder guides across topics including:
  • Personal finance
  • Financial comparison
  • Health insurance
  • General insurance
  • Life insurance

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4 Responses

    Default Gravatar
    MatildaFebruary 19, 2022

    In simple terms, what is for a pensioner couple the best senior health insurance for hospital and extra’s, incl cataracts , hip replacements ? Thanks

      AvatarFinder
      JamesFebruary 24, 2022Finder

      Hi Matilda,

      Most Silver and Gold policies offer insurance for both hospital and extras, and many include cover for cataracts and joint replacements.

      You can use our guide to Seniors Health Insurance to review your options in more detail.

      Take note of any waiting periods that apply with a policy, as you’ll need to serve these before you can make a claim on insurance.

      Unfortunately, I can’t tell you which is the ‘best’ policy as the right health insurance for you will depend on your own needs and circumstances.

      When you’re ready, you can click the ‘Go to Site button’ of your preferred insurer to learn more about them and to apply for a policy.

      I hope this helps.

      Regards,
      James

    Default Gravatar
    SueFebruary 9, 2017

    Can I claim gym membership with extras only cover?

      AvatarFinder
      RichardFebruary 10, 2017Finder

      Hi Sue,

      Thanks for getting in touch.

      Some funds will provide you with discounted gym memberships but it will depend on your policy. For more information, please head over to our article discussing health insurance and gym memberships. You should be able to find what you may be able to claim from each fund.

      If in case you are still going to compare policies, please make sure you read the terms and conditions of the policy to learn more and know if it is the right policy for you or not.

      I hope this helps. Should you have further questions, please don’t hesitate to reach out again.

      Have a wonderful day!

      Cheers,
      Richard

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