10 Top Tips: Saving on private health insurance (PHI) costs
Private health insurance premiums in Australia will rise by an average of 4.41% from April 1, 2026. This is largest cost increase since 2017, as a result of higher hospital and claim costs.*
Combined hospital and extras policies average around $2,800–$3,500+ annually for singles and $5,400–$6,800+ for couples, with Victoria being the most expensive state.
How to find out about your new premium costs
The Australian government requires insurers to provide updated premium information annually, usually just before the April increase, available via PrivateHealth.gov.au.
* Key Factors Affecting Costs
Community Rating: Premiums don’t vary by health history, only by policy type, age, and location.
Lifetime Health Cover loading: 2% per year after age 30 without hospital cover.
Government Rebate: Income-tested rebate reduces premiums by 24%-32% for eligible people.
State differences: Victoria has highest hospital insurance costs; Northern Territory the lowest.
Review your options: Switching tiers or providers can reduce costs; The tax office estimates an average 85 cents per dollar is returned on claims (in https://privatehealth.gov.au/)
What to Do Next?
You now have about 2 weeks to review your private health cover and find out if you can make savings before the premiums increase effective 1 April 2026.
Here’s 10 Tips to save on private health costs so you can plan to enjoy your spend somewhere else.
Review your coverage
Adjust hospital cover based on your needs (e.g., elective surgery).
Consider reducing extras or overall cover if it's more than you need.
Look for discounts
Some insurers offer discounts for early payment or direct debit.
Pay before April 1
Lock in the current premium rates by paying the annual premium before renewal day.
Note: Easter (29 March – 1 April) may affect timing.
Consider your income
For 2025/26, if you don't have PHI and earn above set income limits set income thresholds ($101,000+ for singles, $202,000+ for families) you may incur an extra tax of 1%-1.5%.
Age factor
After age 31, not having PHI adds a 2% loading per year for lifetime health cover.
Check your excess
Increasing your excess can reduce premiums.
Extras excess
Some policies have an excess on extras cover; choosing a higher excess may increase refunds on expensive extras.
Corporate membership
Check if your employer offers partially or fully funded PHI.
Check policy details carefully
Older policies may have better coverage despite appearing costlier.
Customer service matters
Good support from your insurer is important when you need it most.
Next Steps
Visit PrivateHealth.gov.au for your updated premium info and to compare cover appropriate to your health requirements
Review your policy and options before April 1 to avoid paying higher rates.
Contact financial advisors or insurance experts for tailored advice and help saving money.
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