// Health Insurance Australia
Private health
insurance explained
Hospital cover, extras, the Medicare Levy Surcharge and Lifetime Health Cover loading — everything you need to understand private health insurance in Australia.
Key numbers every Australian should know
$93k
Single income threshold for Medicare Levy Surcharge
+2%
LHC loading per year after age 31 without hospital cover
24.6%
Base tier government rebate on private health premiums
4 Tiers
Basic, Bronze, Silver, Gold — standardised since April 2019
Types of private health cover
Private health insurance in Australia comes in two main types — hospital cover and extras cover — which can be purchased separately or as a combined policy.
🏥Hospital Cover
Covers treatment as a private patient in hospital, choice of surgeon, and access to private hospitals. Tiers since April 2019: Basic (minimum to avoid MLS), Bronze, Silver, Gold (most comprehensive including obstetrics and IVF).
🦷Extras / Ancillary Cover
Covers non-hospital services: dental, optical, physiotherapy, chiro, psychology, podiatry and more. Annual limits and waiting periods apply per category. Check limits carefully — they vary enormously between funds.
💊Combined Policies
Most Australians take out a combined hospital and extras policy. Usually cheaper than buying separately. Ensure the hospital tier meets your actual needs — don't pay for Gold if Bronze covers what you need.
The two financial incentives
Medicare Levy Surcharge (MLS)
If your income exceeds $93,000 (single) or $186,000 (family) and you don't hold private hospital cover, you pay an extra 1–1.5% in tax. For someone earning $100,000, that's up to $1,500/year — often more than a basic policy costs.
Lifetime Health Cover (LHC)
If you don't take out hospital cover by 1 July after your 31st birthday, you'll pay 2% extra for every year over 30 — up to 70%. Someone who waits until 40 pays 20% more in premiums for the next 10 years.
Major Australian health funds
🔵Bupa
Australia's largest fund by membership. Wide hospital network, strong corporate cover. International parent with global medical coverage options.
🟢Medibank
ASX-listed, second-largest fund. Live Better rewards program. Also owns ahm (budget-focused). Nationwide retail presence.
🔴HCF
Not-for-profit, member-owned. Reinvests profits into benefits. Historically strong extras limits. No external shareholders.
⚪nib
ASX-listed, strong digital experience. Transparent pricing. International student and overseas visitor cover. Popular with younger Australians.
🟡ahm (Medibank)
Medibank's budget brand. Simpler, lower-cost policies. Good for those wanting basic hospital cover to avoid MLS or LHC loading.
🟠Australian Unity
Member-owned mutual. Competitive extras limits. Strong Victorian presence. Also offers general insurance and wealth management.
Not sure which health fund is right for you?
Ask Archie about your age, income and health priorities to get a plain-English view of what hospital tier and extras cover makes sense.
Ask Archie — Free
⚠️ General information only. Health insurance premiums, rebates and thresholds change each year. Always compare policies at privatehealth.gov.au and consult a licensed adviser if needed.