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What you need to know
The cheapest hospital cover can be found from around $19 a week.
There are cheap policies that let you avoid the Medicare Levy Surcharge.
It also lets you choose your own doctor and can help you avoid long waiting lists.
These policies are based on Finder's health insurance awards, a ratings methodology based on a combined price and features score ranging from 0 to 10. We rated almost every health insurance policy available in Australia – 175 hospital insurance policies and 182 extras policies – and selected winners for basic, bronze, silver and gold hospital policies.
Products were assessed by averaging premiums (with a $750 excess, no rebate applied) from all states and territories for 4 life stages: single, couple, family and single parent. The 38 coverable treatment categories were assessed against the average price for each product, with policies offering the best value scoring the highest.
Here's a wide range of hospital policies from Finder partners. You can look for in-hospital benefits that are important to you by clicking "All treatments". Prices are based on a $750 excess for a single person earning less than $90,000 living in Sydney.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
Compare prices from 30+ Aussie funds in under 30 seconds.
What are the main benefits of hospital cover?
Tax benefits
There can be tax benefits if you earn over $90k as a single person or $180k as a couple. You can avoid paying the Medicare levy surcharge with a basic hospital policy.
It's cheaper to buy by age 31
The Lifetime Health Cover loading is a penalty that applies to anyone who takes out private health insurance after their 31st birthday. The loading increases by 2% for every year you don't have hospital insurance.
Shorter waiting times
Elective surgery waiting times are typically much shorter than public hospitals. Keep in mind though that you'll have to wait 12 months if your condition is pre-existing.
You get your choice of doctor
You often get to choose your own doctor, when you're treated and your own room in a private hospital, where possible.
Ambulance cover
Medicare doesn't cover ambulance transport, except in Tasmania and Queensland. A basic hospital policy can cover you though. There are also ambulance-only policies from $1.50 a week.
What is hospital only health insurance?
Hospital only health insurance allows you to be treated as a private patient at hospital, often with your choice of doctor. It's available in 4 tiers – gold, silver, bronze and basic – and pays a share of your medical costs when you're admitted to hospital, including accommodation and theatre fees.
How does hospital cover work?
If you receive an in-hospital service as a private patient, Medicare typically covers 75% of the Medicare Benefits Schedule (MBS) fee. Your private health cover will pay the remaining 25%.
However, a doctor or specialist won't always stick to the MBS fee set by the government as a fair fee for a service or treatment. In this case, you'd have to pay an out-of-pocket fee known as "the gap".
Some insurers have deals with healthcare providers that mean all or some of the gap is covered by your health fund.
Hospital cover only helps with items that are on the MBS. If the treatment you want isn't on the MBS, you won't get help from private hospital cover.
Save on your insurance: June 2023
10 health funds have upped their prices since 1 April. Some 38% of health insurance customers are facing higher bills (as of 1 June). That's more than 5.5 million Australians.
The price increases make now a great time to look for better-value health insurance. The switching process between funds is simple. You typically won't have to re-serve any waiting periods.
My wife and I earn over the MLS threshold and we live in NSW, so it made sense for us to take out hospital insurance. Now we're saving money by having a policy in place, plus we don't need to worry about an expensive ambulance bill anymore.
Each health insurance tier covers a standardised set of treatments. Here's a quick summary of each tier.
Gold hospital cover
Gold-tier hospital insurance covers all 38 treatments outlined by the Australian government. This includes treatments such as joint replacements, pregnancy and insulin pumps as well as all services covered by silver-tier policies.
Average premium:
$208.29
a month for a single policy.* Lowest premium:
$153.39
a month for a single policy.*
Silver hospital cover
Silver-tier hospital insurance covers at least 26 treatments outlined by the Australian government. This includes treatments such as dental surgery, lung and chest and podiatric surgery as well as all services covered by bronze-tier policies.
Average cost:
$146.47
a month for a single policy.* Lowest premium:
$102.5
a month for a single policy.*
Bronze hospital cover
Bronze-tier hospital insurance covers at least 18 treatments outlined by the Australian government. This includes joint reconstructions, ear, nose and throat and gynaecology treatments as well as all services covered by basic-tier policies.
Average cost:
$98.23
a month for a single policy.* Lowest premium:
$86.34
a month for a single policy.*
Basic hospital cover
Basic-tier hospital insurance isn't required to fully cover any treatments outlined by the Australian government, but it needs to have restricted cover for rehabilitation, hospital psychiatric services and palliative care. Basic cover is primarily used to avoid the Medicare Levy Surcharge and Lifetime Health Cover loading.
Average cost:
$85.42
a month for a single policy.* Lowest premium:
$76.38
a month for a single policy.*
*Average prices are updated monthly in line with Finder's database of health insurance policies. Prices are based on a single individual with less than $90,000 income and living in Sydney with a $750 excess.
Clinical category
Basic
Bronze
Silver
Gold
Rehabilitation
R
R
R
Hospital psychiatric services
R
R
R
Palliative care
R
R
R
Brain and nervous system
Eye (not cataracts)
Ear, nose and throat
Tonsils, adenoids and grommets
Bone, joint and muscle
Joint reconstructions
Kidney and bladder
Male reproductive system
Digestive system
Hernia and appendix
Gastrointestinal endoscopy
Gynaecology
Miscarriage and termination of pregnancy
Chemotherapy, radiotherapy and immunotherapy for cancer
Pain management
Skin
Breast surgery (medically necessary)
Diabetes management (excluding insulin pumps)
Heart and vascular system
Lung and chest
Blood
Back, neck and spine
Plastic and reconstructive surgery (medically necessary)
Dental surgery
Podiatric surgery (provided by a registered podiatric surgeon)
Implantation of hearing devices
Cataracts
Joint replacements
Dialysis for chronic kidney failure
Pregnancy and birth
Assisted reproductive services
Weight loss surgery
Insulin pumps
Pain management with a device
Sleep studies
Hospital health insurance and tax (the MLS and LHC)
There are 2 different government schemes that may cost you money if you don't have hospital cover.
Medicare Levy Surcharge
If you earn over $93,000 (from 1 July 2023) and don't have hospital cover, you'll be taxed 1%, 1.25% or 1.5% of your wage due to the MLS. Get a cheap policy and you can avoid the tax.
For a lot of people, the cost of a hospital policy can be less than what they'd be taxed if they didn't have it. For example, a single person who earns $95,000 per year would pay an additional $950 in tax if they don't have insurance. But there are plans available on Finder from $76,37 – or $916.44 per year.
So even if you don't plan on using private health insurance, it can make financial sense to get a policy anyway.
Lifetime Health Cover loading
LHC loading kicks in on 1 July immediately after your 31st birthday. For every year you don't have health insurance from that date, you'll be charged an extra 2% when you eventually do decide to get a policy.
For example, if you wait until you're 41 to get hospital cover, your premiums will be 20% higher than they would have been if you took out a policy before the deadline. That's assuming you don't have an exemption. Get hospital cover before the deadline and you won't be hit with the penalty.
Waiting periods for hospital cover
The main hospital covers and their waiting periods include the following:
Service covered
Typical waiting period
Emergency ambulance cover
1 day
Accidental injury benefit
1 day
Acute mental health treatment
2 months – a one-time waiver may apply
Rehabilitation
2 months
Palliative care (for life-limiting illnesses)
2 months
Pregnancy and birth
12 months
Pre-existing conditions
12 months
Waiting periods vary depending on your policy. The services listed here do not represent a complete list of services covered under all hospital policies. Depending on your fund and policy, you may find many other cover options to match your needs.
Pre-existing medical conditions within the first 12 months
Out-of-pocket costs (that's when your doctor charges more than the MBS item fee)
Fees for any specialists you see outside of hospital
Any services you receive outside of hospital
Any medical treatment that does not have an MBS item number
Hospital stays that are longer than 35 days
Cosmetic surgery for non-medical reasons
Why you can trust Finder's health insurance experts
We're free
Our health insurance engine is completely free to use. You pay the same as buying directly from the health insurer. Better still, we regularly run exclusive deals that you won't find on any other site.
Unlike other comparison sites, we're not owned by an insurer. That means our opinions are our own and you can compare nearly every health fund in Australia on the site (and find a better deal).
We're here to help
Since 2014, we've helped 350,000+ people find health insurance by explaining your options simply. We'll never ask for your number or email to see prices. We're here to help you make a decision.
Frequently asked questions
Hospital only health insurance allows you to be treated as a private patient at hospital, often with your choice of doctor. It's available in 4 tiers – gold, silver, bronze and basic – and pays a share of your medical costs when you're admitted to hospital.
The average cost of a basic hospital policy is
$85.42
a month. Prices will increase though with higher tiers.
Nobody needs to get hospital insurance since Australians have access to Medicare. However, there are some situations where it may make sense to get it. For example, ambulance cover isn't covered by the public system in most states. It also tends to have significantly shorter waiting periods and there can be some tax benefits if you earn over $90,000 as a single person.
Hospital insurance pays for treatment as a private patient when you're admitted to hospital. Extras cover helps pay for services outside of hospital such as dental, physiotherapy and optometry.
The MBS is a list of all the healthcare treatments and procedures subsidised by the government. These are called items and there are over 5,700 of them. There's a fee attached to every item on the MBS.
Doctors in a private facility aren't obligated to adhere to the MBS fee for the whole cost of their service. If they charge more than the recommended MBS fee, you will likely have some out-of-pocket expenses.
If a policy is described as a "plus", then it will cover the minimum number of treatments for its tier, along with at least 1 treatment from the next tier up.
Gary Hunter is an editor at Finder, specialising in insurance. He’s been writing about life, travel, home, car, pet and health insurance for over 5 years and regularly appears as an insurance expert in publications including The Sydney Morning Herald, news.com.au, The Telegraph, Explore Travel and Escape. Gary holds a Kaplan Tier 1 General Insurance (General Advice) certification and a Kaplan Tier 1 Generic Knowledge certification which meets the requirements of ASIC Regulatory Guide 146 (RG146).
