The cost of private health insurance can vary! The amount you’ll pay for your premium (that’s the amount you pay to your health insurer) will depend on the type and level of cover you pick.
A few personal details like your age when you first take out and maintain private health insurance hospital cover, income, where you live and who needs to be covered on your policy (just you, you and your partner, or kids too) will also determine if any rebates, discounts or loadings will apply.
But guess what, private health insurance in Australia is community rated. That means everyone in the same state is entitled to buy the same cover at the same base rate.
There are a couple of things that may impact the amount you pay on your premiums, such as Lifetime Health Cover (LHC) loading, and the age-based discount that we’ll explain.
At Frank we make health insurance for all life stages that’s affordable and easy.
The type of cover you choose will depend on who you’re adding to your policy and your healthcare needs.
You may choose to take out:
You might only need the basics for just in case, or you may need a more comprehensive cover to meet your current or future healthcare needs.
You can go with single, couples, family, or single parent cover depending on your family dynamics and who you’re adding to your policy.
You get to choose what suits your situation best, keeping in mind that prices between policies will vary depending on these factors.
The cost of delivering healthcare can vary by state or territory. Depending on where you live your premium may be higher or lower, partly influenced by how often people in your state or territory make claims.
Is it just you? Or do you have a partner, or a whole family who needs to be covered? Policy prices vary depending on whether you choose singles cover, couples cover, family or single parent family cover (if you want to include your dependants on your policy). With Frank, children studying full time are classified as student dependants until they turn 25.
Your household income affects the amount you might receive for the Australian Government Rebate on private health insurance. You can choose to get the rebate as a reduction on your base premiums or wait and claim it as a lump sum when you do your tax return at the end of the financial year.
Want to know more? Check out the current income thresholds and see what rebate rate you might qualify for.
Some funds (like Frank!) offer the age-based discount on hospital cover for members under 30. You have until the 1st July after you turn 31 to take out hospital cover or you might be lugged with Lifetime Health Cover loading.
The amount you might receive for the Australian Government rebate on private health insurance hospital cover is also influenced by the age of the oldest person on your policy.
An excess is basically an amount you agree to chip in if you need hospital treatment. In return, your health insurance premiums are lower. It’s a way of saying, 'I’ll cover a little upfront if something happens, so I pay less every month.'
These are costs you pay when you go to hospital for treatment, that are on top of the costs your health insurance and Medicare pay. They usually happen if your doctor charges more than the amount covered by Medicare and your health insurer (this difference is often called 'the gap').
Extras cover helps reduce expenses for services like dental, physio and optical, but it usually doesn’t cover the full amount. You’re likely to pay out-of-pocket costs because:
Unlike hospital cover, Medicare generally doesn’t contribute to extras services. Exceptions include eligible GP care plans, where Medicare may cover some of the cost of services for chronic conditions, things like physiotherapy, or psychology sessions. Children may also receive partial or full Medicare-funded basic dental services under the Child Dental Benefits Schedule when their parent or carer receives certain Centrelink payments. However, members cannot claim a benefit though their extras cover for the same service.
It’s your life, and your health. Frank has a range of covers, so you can change your cover with your healthcare needs. A great way to check your premium reflects the cover you need is by reviewing your cover from time to time. Frank’s got a step by step guide to reviewing your cover.
Need help reviewing your cover? Contact us
If you’re a higher income earner, you may be up for paying the Medicare Levy Surcharge (MLS) if you don’t hold appropriate hospital cover.
The MLS was brought in by the Australian Government to encourage higher income earners to take out hospital cover and reduce pressure on the public healthcare system. The way to avoid it is by taking out an eligible hospital cover.
To avoid it for the full tax year, you must hold hospital cover the entire time, any days without hospital cover will attract MLS. All of Frank’s hospital covers will help you avoid the MLS.
Private health insurance can give you more control and flexibility over your healthcare.
The main reasons people choose hospital cover:
People choose extras cover:
The answer to the question really depends on your personal circumstances, but there are some things to consider when thinking about when to take out your own policy.
The cost of private health insurance for a family can vary based on several factors, including the level of cover, the insurer, the state you live in, and any applicable discounts or loadings. It’s important to note that when moving from a couple policy to a family policy, adding children does not increase the premium. However, transitioning from a single policy to a single-parent policy will generally result in a higher cost.
Key factors that affect the price of premiums include:
When to take out private health insurance isn’t a one-size-fits-all decision. It depends on your personal circumstances that may include your age, health needs, lifestyle, and financial situation. For some people, it’s about avoiding additional tax or planning ahead for future health needs. For others, it’s about accessing services Medicare doesn’t usually cover, like dental or optical. The right time to consider it often aligns with key life stages:
With Frank, you can choose to pay your premium weekly, fortnightly, monthly, quarterly, twice a year or annually, whatever works best for you. You can even make premium payments and check where you’re paid until in the Frank app.
No terms and conditions here. Just good news - we’re winners.
Because sometimes your needs might change a little, you have a $500 freedom limit to claim on your 7 included extras services.
Get an extra $50 to claim on your freedom limit each full calendar year, with a maximum of $200 after 4 years of continual cover.
Because sometimes your needs might change a little, you have a $700 freedom limit to claim on your 11 included extras services.
Plus an additional Optical limit. You can claim 100% back on optical up to your $150 annual limit.
Get an extra $100 to claim on your freedom limit (excludes optical) each full calendar year, with a maximum of $400 after 4 years of continual cover. Your loyalty benefit will be available on 1 January after you've completed one full membership year.
