What are the benefits of private hospital cover?

Private health insurance can be a tricky topic, leaving many of us unsure about how it works. Frank is about simplifying things and providing affordable options. We’ve written this guide to help explain private hospital cover, its benefits, and dispel any myths surrounding it.


Frank's favourite affordable covers

Accident Only Hospital (Basic)

Minimum Basic cover with additional coverage available in the event of an accident
$ 19.10
per week
  • Emergency Ambulance Cover
  • Upgraded cover in the event of an accident

Entry Hospital (Basic+)

Entry hospital cover for some essentials
$ 19.35
per week
  • Emergency Ambulance Cover
  • Dental Surgery
  • Joint Reconstruction

Private Hospital (Bronze)

Basic level private hospital cover with some exclusions and restrictions to keep costs down
$ 22.45
per week
  • Emergency Ambulance Cover
  • Bone, joint and muscle
  • Digestive system

* The price shown is per week and applies to a Single, aged 30, living in VIC. It excludes LHC loading and includes a Base Tier Government Rebate

Two types of cover: hospital and extras

Private health insurance offers two main types of cover: Hospital cover and extras cover.
Hospital cover helps you with the expenses incurred during your stay in a private hospital. You do not need private health insurance to be admitted to a private hospital. The benefits of having private hospital cover is that it simply helps you pay the costs associated with your admission and treatment.

On the other hand, extras cover takes care of outpatient treatments that aren't covered by Medicare like dental, optical, physio, chiro, osteo, some pharmaceuticals and often a few others.

Benefits of private hospital cover

  1. Fast-track your treatment: Non-urgent medical procedures often face long waiting lists of months or even years in the public system. With private hospital cover you often get access to treatment quicker via your own doctor and may avoid delays for elective surgeries like wisdom teeth removal, knee reconstructions, and more.
  2. Doctor of your choice: In public hospitals, you're assigned a doctor based on availability. In a private hospital, you have the freedom to choose your doctor (subject to their availability) and ensure consistency throughout your treatment.
  3. Pregnancy peace of mind: People thinking of starting a family often opt for private care to have the reassurance of an obstetrician throughout their pregnancy.
  4. Comfort: Private hospitals generally offer a higher level of comfort, including being more likely to get your own room.

The Medicare Levy Surcharge

The federal government implemented a Medicare Levy Surcharge of 1% to 1.5% for high income earners to incentivise them to take out private health insurance. You will be liable to pay the surcharge if you don't have complying hospital cover with a private health insurer; and have a taxable income of more than $93k for an individual or $186k for a couple or family. Learn more here.

Lifetime Health Cover

Private health insurance is optional - however if you don't purchase hospital cover by the 1st of July following your 31st birthday, you will pay the Lifetime Health Cover loading on top of the premium of any hospital cover you later purchase. Learn more here

Should you get private hospital cover?

Just ask yourself these key questions:

    • Would I otherwise be liable for the Medicare Levy Surcharge or Lifetime Health Cover loading?
    • Do I plan to have a baby in the next 3 years? If so, would I like to choose my own obstetrician and have the baby in a private hospital?
    • Am I likely to need elective surgery within the next 5 years?
    • If something medical happens in the next 5 years, would I prefer to have the option to be treated in a private hospital?

Answered yes to any of these questions? Maybe it's worth considering private health insurance cover. There are cheap health insurance options available and Frank Health Insurance can offer you a range of different levels of cover to suit your individual needs without breaking the bank.

Want to explore your options? Let’s talk.

Up to 12 weeks free plus skip 2 & 6 month waits on extras*. Get 6 weeks free after your first month, and a further 6 weeks free after 12 months when you join by July 15 and maintain combined cover.

*For new members joining on combined hospital and extras cover, paying by direct debit. Must not have been a Frank member in the last 12 months. Must pay first month’s premium to receive initial 6 weeks free. Must maintain combined hospital and extras cover continuously and be financial for 12 months from the cover start date to be eligible to receive further 6 weeks free. No other discount will be applied in second year of membership. Other waits (including hospital waits), annual limits and sub limits apply. Extras claims made with a previous fund count towards annual limits. Offer only available via Frank health insurance website or phone. Not available with any other offer. Ends 15 July 2024.