Should you get private health insurance?

First, what is health insurance?

Private health insurance generally consists of Hospital cover and general treatment cover, also known as Extras cover. There are different types of cover that offer different benefits.

With Hospital cover, if you're an Australian resident with private health insurance, you can choose to be treated as a private patient at either a private or public hospital (provided the services are included on your cover and you have served your waiting periods) or a public patient at a public hospital.

If you are a private patient at a private hospital, you may also have more choice as to when you're admitted to hospital. If you are a private patient in a public hospital, the hospital waiting lists may still apply for elective surgery.

Extras cover helps with the cost of services that are generally not covered by Medicare - things like dental, glasses, physiotherapy and a range of other services that are included on your chosen level of Extras cover.

Depending on the level of support you want from private health cover, you can choose Hospital cover or Extras as a standalone policy, or you can choose to have both as a more comprehensive health cover package.

Read more: What is the difference between Medicare and private health insurance?

5 reasons why health insurance could be worth it for you

1. Want elective treatment sooner?

In the public system, if your condition isn't urgent, you'll be placed on a waiting list for in-hospital treatment - even if you're in discomfort, and even if your ailment prevents you from undertaking your usual work. Private hospital insurance will generally mean shorter wait times on a wide range of in-hospital elective procedures (where included on your cover and subject to any applicable waiting periods) in a private hospital.

Prior to COVID-19, Australians reported waiting four times longer on average¹ in the public system than in private for elective surgeries. As elective surgery restrictions ease across the majority of Australia, most private hospitals are increasingly doing more elective procedures so you can look forward to having surgery when you and your doctor are ready.*

2. Your own room

Do you value privacy? Private hospital cover can help provide the comfort and privacy of your own room in a private hospital.²

3. Your doctor that you know and trust

With private hospital cover, you can choose the doctor you know and trust for your treatment.

You can use Medibank's Find a Provider tool to see the practitioners and specialists that operate in your area, including (in many cases) their history of charging out-of-pockets to help you make an informed choice.

4. The benefits of extras

There's more to private health insurance than treating illness and accidents. Extras cover supports you for accessing services that can help you better manage your health - like optical, dental, physio and so much more.

5. Keeping your surgery costs down

Elective treatment in a private hospital without private hospital cover can be much more expensive. To find out how much you could be out of pocket, use Medibank's Procedure cost estimator. Private hospital cover pays benefits towards your treatment, and in some instances there are no out-of-pocket costs for these procedures.

Always check with your treating doctors and ask about Informed Financial Consent.