Health insurance is one of those expenses that seems to rise every year, leaving many Australians wondering how to keep costs under control while still getting the protection they need. The key isn’t always finding the cheapest plan—it’s about choosing coverage that actually delivers value for money. Too many people either overpay for benefits they don’t use or stick with outdated policies that no longer suit their lifestyle.
The good news? With a few practical strategies, you can save hundreds—sometimes even thousands—on your premiums without compromising your health cover. Here are five effective ways to make your policy work harder for your wallet.
1. Shop Around with a Broker
It’s tempting to stay loyal to the same health fund year after year, but that loyalty can cost you more than you think. Comparing policies through an independent broker or reputable online tool often reveals better coverage at a lower price.
Smaller health funds, particularly not-for-profit providers, can sometimes deliver greater value than the big-name brands. Brokers can also help you avoid hidden exclusions or costly out-of-pocket surprises by giving you access to a broader range of policies. Plus, if you’re switching to a similar or lower level of cover, you generally won’t need to re-serve waiting periods.
Bottom line: A little research—or a quick call to a broker—can put significant savings back in your pocket.
2. Think Beyond the Basic Tier
Many people buy a Basic policy just to dodge the Medicare Levy Surcharge, but those bare-minimum plans rarely offer meaningful hospital coverage. They might take care of an ambulance ride or a very limited set of procedures, but when it comes to surgery or specialist care, you could be left paying most of the bill yourself.
Here’s the catch: for just a small increase in monthly premiums, Bronze or Silver plans provide far broader protection. For example, while a Basic plan may cost about $78 per month for a young adult, a Bronze plan could be only $91—with far more included services.
If you want real value, step up from Basic to Bronze or Silver. It’s a small difference in price for much bigger savings in the long run.
3. Adjust Your Excess
Your excess—the amount you pay out of pocket when admitted to hospital—has a big impact on your premiums. Opting for a higher excess can lower your monthly costs substantially.
Most policies give you a choice between $250, $500, or $750 excess. Choosing the higher end could save you hundreds each year, especially if you’re generally healthy and don’t anticipate needing hospital treatment anytime soon. Just make sure you have some savings set aside in case you do need to claim.
Bottom line: A higher excess often makes sense financially, but weigh it against your personal health needs.
4. Reconsider Extras Cover
Extras insurance—covering services like dental, optical, or physiotherapy—can be worth it if you use these services often. But many people pay for extras they rarely claim, meaning their premiums far outweigh their benefits.
If you’re only visiting the dentist once a year or hardly ever see a physio, your extras policy could be draining your budget. For example, paying $800 annually for extras while only claiming $300 is a straight loss. In that case, trimming or cancelling extras cover may be the smarter choice.
Bottom line: Keep extras only if you’re making the most of them. Otherwise, save the money.
5. Make Use of Rebates and Discounts
One of the easiest ways to cut costs is by checking if you qualify for the government’s private health insurance rebate. Singles earning under $101,000 and couples or families under $202,000 can claim rebates of up to 24.288% (as of April 2025).
Other simple tactics include pre-paying your premiums annually (some funds give discounts for upfront payments and let you beat the April price hike) or setting up direct debit to score small monthly savings.
Bottom line: Don’t leave free money on the table—take advantage of rebates and insurer discounts wherever possible.
By taking the time to compare policies, selecting a plan that matches your actual needs, and making a few clever adjustments, you can keep your premiums down without sacrificing peace of mind. Health insurance doesn’t have to be a financial burden—sometimes, it’s just about knowing where to look and how to tweak the details.
