What are the different types of health insurance available in Australia?

  • October 30, 2020 02:45 PM AEDT
  • Team Kalkine
    Team Kalkine
    Team Kalkine
    16932 Posts

    Team Kalkine comprises of experts who understand various markets nuances and are enthusiastic and passionate to provide best possible offerings in the form of insights and stories. The team has rich experience of working across different markets with...

What are the different types of health insurance available in Australia?


  • The Australian health system is jointly run by all levels of the Australian government - federal, state and territory, and local.
  • There are mainly three types of private health insurance in Australia- Ambulance cover, hospital cover, and extras cover.
  • Extras or general cover is the insurance for out-of-hospital medical treatments such as dental treatment, physiotherapy and more.

The health system of Australia is one of the best across the world. It offers safe and affordable health care for all people in the country. The different levels of government – federal, state and territory, and local – jointly manage the health system.

Health insurance has become an essential part of the overall health care system. In Australia, the health care system structure is highly developed with health care insurance providing all coverage for medical expenses to the citizens.

There are many private health insurance providers offering coverage for medical expenses depending on the plan selected by the policyholder. The medical costs include all the medical services such as a drug prescription, emergency rooms, medical procedures, and doctor’s visit.

With rising costs in the health care industry, including increasing medical fees, the rise in the price of medical devices and more, the health care insurance companies are tackling financial pressure. Private health insurance can help individuals pay hospital as well as medical costs that are not covered by Medicare.

Australia private health insurance is community-rated and not 'risk-rated' like other forms of insurance. The insurance provider cannot refuse to insure any person and must offer the same premium to everyone at the same level of cover, despite their varying risk profile along with the likelihood of using health services.

GOOD READ: Australian Health Insurance Got Expensive in October; How can you save?

There are three main forms of private health insurance-

Source: moneysmart.gov.in

Source: moneysmart.gov.in

Let us discuss in detail-

Ambulance policies

Ambulance policy is the most basic type of insurance policy and covers individuals for the cost of transport in the ambulance during an emergency. Some states, as well as territory governments, cover the ambulance cost services for residents without any private health insurance. The options for ambulance cover vary depending on state or territory one person lives in. 

DO READ: What is an ambulance cover, and is it for you?

Hospital policies

With hospital cover, the insurance policyholder has the right to select his/her doctor and choose whether he/she will be treated at a private or public hospital that his/her doctor attends.

If you are at a private hospital, you may also have some more options as to when you are admitted to the hospital. However, if you are a private patient in a public hospital, waiting lists of the public hospital still apply.

Hospital cover can help with the expenses of staying in a hospital. The costs that will be covered depends on the level of health insurance policy you have. The levels of policy range from top to basic.

Before signing up, one must check and confirm all the inclusions.

When a person is admitted to hospital, they have the following treatment options-

Private hospital insurance plans:

Every health insurance provider offers policies with different levels of cover. In general, the more expensive policies cover a broader range of services, while plans at the lower cost limit the services covered in a private hospital. The hospital insurance policies are classified as Gold, Silver, Bronze, and Basic.

General Treatment or Extra Cover

General treatment cover, also known as extra cover or ancillary cover, offers insurance against some or all treatment costs by ancillary health service providers. The extent of your insurance coverage depends on the type of policy you choose and may include services such as-

  • Dental Treatment.
  • Chiropractic Treatment.
  • Home Nursing.
  • Prostheses (for example, Hearing Aids).
  • Physiotherapy, Eye Therapy, Occupational, and Speech Therapy.
  • Glasses and Contact Lenses.

Extras cover is for out-of-hospital medical treatments. Generally, higher the number of services the policy covers, the costlier it is.

RELATED: A Glance at Health Insurance Service Providers

Things to consider before buying a health insurance plan

There are several things to be checked by a person before buying a health insurance plan. If any person is purchasing a health insurance plan for the first time or upgrading their plan, there is a waiting period before claiming benefits. During this period, individuals do not get any benefits for some treatments or may get lower benefits for some period.

The other important thing is to check and compare health insurance policies and get the one which is offering good benefits at a lower cost.

It is advisable to buy a health insurance plan at an early age to attain benefits at a lower cost. Also, the Australian government provides an age-based discount.

ALSO READ: How do Financial Planners Pick the Best Health Insurance for You?



The website https://kalkinemedia.com/au is a service of Kalkine Media Pty. Ltd. (Kalkine Media) A.C.N. 629 651 672. The principal purpose of the content on this website is to provide factual information only and does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) or engage in any investment activity under discussion. We are neither licensed nor qualified to provide investment advice through this platform. In providing you with the content on this website, we have not considered your objectives, financial situation or needs. You should make your own enquiries and obtain your own independent advice prior to making any financial decisions.
Some of the images that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed on this website unless stated otherwise. The images that may be used on this website are taken from various sources on the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image. The information provided on the website is in good faith, however Kalkine Media does not make any representation or warranty regarding the content, accuracy, or use of the content on the website.


We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK