Is private health insurance worth it?

These days, with rising costs and economic uncertainty, the question "Do I need private health insurance?" seems more pressing than ever.

As pressure on the public health system grows, many Australians are weighing up the benefits of private health insurance. Here are just some of the advantages of private health cover, to help you make an informed choice for you and your family.

How does private health insurance work?

In Australia, private health insurance works alongside the public healthcare system, providing additional benefits and coverage for services that aren't typically covered by Medicare. There are two main types of health insurance: Hospital cover and Extras cover.

Hospital cover

Hospital cover can help with the costs of treatment as a private patient in a public or private hospital.

Explore our hospital covers

Extras cover

Extras cover can help with the cost of out of hospital health services that aren't normally covered by Medicare – like dental, optical, physio and more.

Explore our extras covers

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

Why should I consider private health insurance?

Could reduce waiting times for elective surgeries

In the public system, non-urgent conditions could leave you waiting for treatment, even if you're in discomfort, or your condition may prevent you from working. In 2023-2024, 50% of patients waited at least 46 days for admission to have elective surgery.¹ In contrast, private hospital insurance usually means shorter wait times for in-hospital planned surgery. This means you could possibly have your treatment sooner (subject to any applicable waiting periods).²

Reduced surgery costs

Choose your doctor and private hospital

In the public healthcare system, you may not have the choice over your doctor or hospital. With private hospital cover, you can choose the doctor you know and trust for your treatment*, and may get access to a private room^? depending on hospital resourcing, availability and clinical need.

Medibank's Find a Provider tool can help you find specialists in your area who may charge no-gap or a known-gap fees, making your costs more predictable.

Want to save on your dental check-ups?

The great thing about Extras cover is that you don’t have to be sick to make the most of it – you can use it to look after your day-to-day health. When you have Extras cover you may not need to pay for one of the most common procedures: dental check-ups. In fact, with eligible Medibank extras, you can get 100% back on up to two dental check-up and cleans every year at a Members’ Choice Advantage dentist, including x-rays on top of your annual limits. The national average cost of a dental check-up and clean at a Members’ Choice Advantage dentist is $247.50 and if you visit twice a year, you could get around $495 back in value.⁼

Learn more about Dental Insurance and what it covers.

Look after your health and your wallet

With an annual limit that resets every year, extras cover is a handy, practical way to help reduce your out-of-pocket expenses on day-to-day health services like dental, physio, even remedial massage.

Learn more: Is extras cover worth it?

We’ve also worked hard behind the scenes to negotiate better value for our members. All Medibank members with Extras enjoy access to our Members’ Choice Advantage network providers – one of the largest service provider networks in Australia, adhering to strict quality standards for safety and care, along with capped pricing and discounts for all-round better value.ᶲ

Get a tax break

To encourage Australians to take out private hospital cover and relieve stress on the public system, the government applies an additional levy for those without private hospital cover, depending on your annual income. This is known as the Medicare Levy Surcharge.

You could save money on tax with hospital cover If you earn more than $97k as a single or $194k as a family, couple or single parent. You could be paying an additional tax surcharge of 1% (up to 1.5%) of your income as an additional tax surcharge, if you or any of your dependents don’t hold an appropriate level of hospital cover for the full financial year.^$

You can use our Medicare Levy Surcharge Calculator to find out how much extra tax you could be paying without hospital cover.

Discounts and rewards

We understand how important furry companions are to our health and wellbeing, which is why Medibank members enjoy 10% off Medibank Pet insurance premiums.^! Did you know we also offer 15% off Medibank Travel insurance^& and 10% off Medibank Life and Income Protection?^

With our Live Better rewards program, you can be rewarded for healthy actions you’re probably already doing, like going to a dental check-up, getting a good night’s sleep or clocking step counts.^≈ Once you’ve racked up your Live Better rewards points in the My Medibank app, you can redeem them for rewards from our range of partner brands including THE ICONIC, Apple, adidas and more. In fact, Medibank members with eligible hospital or extras cover could earn up to $400 every year in rewards^# from our range of partners, or you could redeem Live Better rewards points to save on your premium.

Access to health programs

When you’re a Medibank member, you could access our preventative health and medical programs. We conduct these in partnership with world-class research institutions to provide access to more affordable care options.

Our Better Knee, Better Me clinical trial supports eligible Medibank members⁺ to help manage painful knee osteoarthritis by providing personalised plans for exercise, weight loss and pain management.

Members with painful hip osteoarthritis may also be eligible to participate in a new research trial developed by the University of Melbourne.

Should I get private health insurance?

Private health insurance has a lot going for it. Beyond feeling peace of mind, it often comes with more choice and shorter wait times for elective surgery.²

You could take advantage of capped prices on dental, physiotherapy, remedial massage, chiropractic, podiatry, optical and acupuncture services when you visit a Members' Choice or Members’ Choice Advantage provider, compared to when a non-Medibank member visits.^> You could get 100% back on dental check-ups twice a year on eligible extras⁼ and access to a rewards program where you can earn up to $400 worth of value^#, every year.

Reach out today and speak with one of our experts about finding the cover that’s best suited to you.

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Things you need to know

¹ Australian Institute of Health and Welfare; Elective surgery; retrieved Jan 2025.

² Better Health – Victoria State Government; Hospitals in Victoria; retrieved October 2024. 

* Subject to doctors availability and hospital resourcing.

^? Applies to admissions to Members’ Choice Hospitals only. Subject to eligibility criteria. You'll need to provide Medibank with supporting documentation from the hospital.

⁼ Calculation based on agreed provider fees. Eligible members on Medibank extras (excluding Healthy Living Extras and Gold Ultra Health) can claim a maximum of two 100% back dental check-ups per member, per year at a Members’ Choice Advantage provider (including bitewing x-rays where clinically required). For members on eligible extras, the first two check-ups do not count towards your annual limit. Members with Healthy Living Extras can get 100% back on one dental check-up each year at a Members’ Choice Advantage provider (including up to two bitewing x-rays, where clinically required) or at a Members’ Choice dentist (excluding x-rays). Members with Gold Ultra Health can get 100% back on up to three dental check-ups at a Members’ Choice or Members’ Choice Advantage provider. Members’ Choice and Members’ Choice Advantage providers are not available in all areas. Two month waiting period applies. Some products may have other dental benefits, check your cover summary for details.

ᶲ Members' Choice providers are not available in all areas and may change without notice.

^$ The single parent/couple/family income threshold is increased by $1,500 for each MLS dependant child after the first child. 'income’ and 'dependants' have a specific meaning for Medicare Levy Surcharge purpose. Learn more.

^! Eligible Medibank and ahm health members who wish to activate this discount must provide accurate membership details: (a) at point of purchase for the discount to apply; or (b) prior to renewal for the discount to apply at renewal.

Medibank Pet Insurance policies entered into for the first time prior to 30 August 2023 and subsequent renewals of those policies are issued by The Hollard Insurance Company Pty Ltd ABN 78 090 584 473, AFSL 241436, arranged and administered by PetSure (Australia) Pty Ltd ABN 95 075 949 923, AFSL 420183 (PetSure) and promoted and distributed by PetSure’s Authorised Representative (AR) Medibank Private Limited ABN 47 080 890 259, AR 286089 (Medibank).

Medibank Pet Insurance policies entered into for the first time on or after 30 August 2023, and subsequent renewals of those policies are issued by PetSure and promoted and distributed by PetSure’s AR, Medibank.

Any advice provided is general only and does not take into account your individual objectives, financial situation or needs. Please consider the Product Disclosure Statement (PDS) ensure this product meets your needs before purchasing, or choosing to continue with the product. PDS and Target Market Determination available at medibank.com.au/pet-insurance.

^& Limits, sub-limits, exclusions and conditions apply. This is general advice only. Medibank Private Limited, ABN 47 080 890 259, an Authorised Representative, AR 286089, of Travel Insurance Partners Pty Limited, ABN 73 144 049 230 AFSL 360138 arranges the insurance on behalf of the insurer. The insurer is Zurich Australian Insurance Limited ABN 13 000 296 640, AFSL 232507. Please consider your own needs and the Combined FSG/PDS to decide if this product is right for you. For information on the Target Market and Target Market Determinations, visit medibank.com.au/travel-insurance/help/

^ Medibank Life Insurance and Medibank Income Protection (collectively Medibank life insurance) are issued by the insurer, Zurich Australia Limited ABN 92 000 010 195 AFSL 232510 (Zurich). NEOS Direct, a registered business name of NDLI Pty Ltd ABN 70 665 747 277 AFSL 547119, distributes and services Medibank life insurance, which is promoted by NEOS Direct's authorised representative Medibank Private Limited ABN 47 080 890 259 (AR No. 286089) (Medibank).  

Any advice provided is general only and doesn’t consider your objectives, financial situation or needs. You should consider these factors, the appropriateness of the advice, and carefully read the relevant Product Disclosure Statement (which sets out the product terms, conditions and exclusions), Target Market Determination and Financial Services Guide before making a decision to acquire, or continue to hold, the product.

Your personal information will be handled in accordance with the Privacy Policies of the parties involved. Click here for NEOS Direct's Privacy Policy, Medibank Private's Privacy Policy or Zurich's Privacy Policy. 

^≈ Must be 16 years or over to register for Medibank Live Better rewards in the My Medibank app. Some program partners and earning activities require a person to be at least 18 years of age to be eligible to earn and/or redeem a reward. Must be a Medibank member with hospital cover, extras cover, or hospital and extras cover, and be up-to-date with premium payments. Excludes Overseas Student Health Cover (OSHC), Ambulance only cover, ahm covers and other selected covers. Live Better Management Pty Ltd, ACN 003 457 289 has entered into commercial arrangements with Medibank Live Better program partners and may receive commissions. Please choose carefully as rewards will not be amended, cancelled, exchanged or refunded due to change of mind. Points earning activities and rewards are subject to change without prior notice and may be subject to availability. Additional terms and conditions may apply to points earning activities and rewards. See full Medibank Live Better rewards terms.  

^# Live Better rewards members could earn up to 40,000 Live Better rewards points each calendar year for successfully completing select Live Better rewards points-earning activities. These activities include, but are not limited to, health and wellbeing challenges, the Weekly Goal, onboarding actions, partner activity earn and the daily auto-tracking bonus. This does not include points earned by shopping with Live Better rewards partners or visiting Members' Choice Advantage providers. 40,000 Live Better points could be redeemed for up to $400 worth of rewards from the Live Better rewards store.

Medibank Live Better Challenges & Goals Earning Policy: The participant of a Medibank Live Better Challenge or Goal may not receive Live Better points or may have their already credited Live Better points reversed in accordance with the Medibank Live Better terms and conditions. To earn Live Better points, the participant needs to complete 100% of the eligible Challenge according to the instructions. The number of Live Better points available for Medibank Live Better Challenges and Goals is subject to change without prior notice. To the extent of any inconsistency between this Policy and the Medibank Live Better rewards terms and conditions, the terms and conditions will take precedence.

⁺ Available to suitable Medibank members aged 45-80 with resident hospital cover that includes joint replacement surgery who have been experiencing chronic knee pain on most days for the past 3 months, are above a healthy weight (BMI≥27) and can access a telephone and internet.

^> Providers are subject to change without notice and are not available in all areas. To access capped prices at a Members' Choice network provider, swipe your Medibank Membership card. Please check if your provider is part of our network ahead of your appointment at medibank.com.au/findaprovider. To find the capped price for a specific item number at your provider, call us on 132 331.

While we hope you find this information helpful, please note that it is general in nature. It is not health advice and is not tailored to meet your individual health needs. You should always consult a trusted health professional before making decisions about your health care. While we have prepared the information carefully, we can’t guarantee that it is accurate, complete or up-to-date. And while we may mention goods or services provided by others, we aren’t specifically endorsing them and can’t accept responsibility for them. For these reasons we are unable to accept responsibility for any loss that may be sustained from acting on this information (subject to applicable consumer guarantees).