Private health insurance in Australia varies widely in cost depending on factors such as the level of cover, age, location, and insurer. As of 2025, Australians are facing an average premium increase of around 3.7% to 4%, the largest rise since 2018, reflecting ongoing increases in healthcare costs.
Average Costs of Private Health Insurance
- Single Adults: For a basic Bronze hospital and extras policy, premiums can increase by about $1.42 per week, while a Gold hospital cover might cost around $3,000 to $3,100 annually after the recent increase.
- Families: For a family on a Silver hospital and extras package, premiums may rise by approximately $6.38 per week. Annual premiums for family policies typically range from $6,000 to $7,000 or more depending on cover level.
For example, Medibank announced a 3.99% average premium rise effective from April 1, 2025, which translates to these weekly increases for typical policies. New South Wales customers face slightly higher increases (around 4.8%) due to state-specific cost pressures.
What Influences Your Premium?
- Type of Cover: Hospital-only, extras-only, or combined packages with varying benefit levels (Basic, Bronze, Silver, Gold).
- Age and Health: Older Australians generally pay higher premiums; Lifetime Health Cover loading may apply if you delay taking out cover after age 31.
- Location: State-based differences in healthcare costs affect premiums.
- Government Rebates: Australian Government rebates can reduce premiums based on income and age.
- Discounts: Some insurers offer discounts for prepaying premiums or using direct debit.
Recent Trends and Increases
- The average premium increase in 2025 is about 3.73%, with some funds like Medibank applying a 3.99% rise.
- Some insurers requested increases as high as 6%, but regulators approved lower rises to balance affordability and sustainability.
- Premiums have been steadily rising over recent years, outpacing general inflation, driven by increasing hospital and medical costs.
How to Manage Costs
- Shop Around: Compare policies across providers to find competitive pricing and suitable coverage.
- Prepay Premiums: Some insurers offer discounts if you pay annually upfront before the price rise date.
- Adjust Your Cover: Tailor your hospital and extras cover to your needs to avoid paying for unused benefits.
- Use Government Rebates: Check your eligibility for the Australian Government’s private health insurance rebate to reduce costs.
Is Private Health Insurance Worth It?
While premiums are rising, private health insurance offers benefits such as shorter waiting times, choice of doctor and hospital, and coverage for services not covered by Medicare. Many Australians find value in having peace of mind and access to private healthcare options.
Summary
In 2025, private health insurance premiums in Australia typically range from around $190 to $300+ per month for singles, and significantly more for families, depending on cover level and insurer. With an average premium increase of about 3.7% to 4%, it’s important to review your policy regularly, compare options, and consider ways to reduce costs without compromising essential coverage.