Private Health Insurance for Mid 20s

I'm currently approaching my mid 20's, and have been wondering if it would be financially advisable to get Private Health Insurance for the next financial year. At the end of this financial year, I'm looking at just touching $100k, with about 25k in work related deductions. I am likely to make a similar amount next year, so likely anywhere from 90-110k, with less deductions - probably only 20k.

Wondering what people in similar situations, who aren't yet 30, are doing. If you're getting coverage, are you getting the basic coverage for tax purposes, or do you find value in a higher end coverage.



  • -1 vote

    Increase your deductions to reduce your MLS liability.


    I am getting it for tax purposes. I find value in the extras and joining bonuses, switching year to year. Not really much value in getting anything but basic hospital for a young healthy person. Over 30 now but that was the purpose back then, now with the added purpose of avoiding lifetime health cover loading

    • +3 votes

      Just so long as everyone knows, the Lifetime Health Cover Loading will be removed once you've held PHI for 10 continuous years.

      • +1 vote

        Where can I read this information? I have had for 13 years wooo

        • +1 vote

          If you are without insurance for 3 years it will apply again

          What if I miss my Lifetime Health Cover
          loading deadline?
          If you take out hospital cover after your LHC loading
          deadline you will have to pay a LHC loading of 2% for
          every year you are over 30. If you maintain continuous
          hospital cover for 10 years the LHC loading is removed
          and you will no longer have to pay the LHC loading on
          your hospital cover. However, if you choose to cancel your
          hospital cover then take it out again later you may have
          to pay a LHC loading when you rejoin.
          To cover small gaps, such as switching from one insurer
          to another, you are able to be without hospital cover for
          periods totalling 1094 days (i.e. one day less than three
          years) during your lifetime, without impacting on your
          LHC loading. If you have a gap of 1095 days you will pay
          a 2% loading. For every 365 days without cover after that,
          your LHC loading will increase by 2%. If you apply to your
          health insurer to suspend your hospital cover for a short
          period, and it agrees, this period of suspension does not
          impact on your LHC loading (you are considered to be
          maintaining your cover).

  • +6 votes

    sometimes paying the tax is cheaper then the private health insurance cost

  • +1 vote

    Beware junk policies with lots of fine print.
    Junk policies are from companies like Frank, budget direct , Latrobe and NIB
    Many doctors including myself charge extras with these funds and not with others because they pay 30% less to the doctor
    Use companies without shareholders such as pheonix , navy etc
    Depending where you are is important.
    Sydney is overdoctored so the need for a fund is less. In areas with less doctors it becomes more important so you can see the best one.


    Curious what industry you work in to have 20k of deductions?


    Just get hospital cover only. It's cheaper.

    You spend so much on extras cover and you still have out of pocket cover.


    Don't get it and support not destroying our world class public health care :)


    Had a think and I don't expect any elective procedures to come up that I can't self-pay. If I've calculated wrong, and have to pay the MLS next year, would rather pay it to the Government than PHI - probably wouldn't be too much worse off, and might be cheaper as tuzii said. Will re-evaluate come next year.

    Thanks guys.

  • +4 votes

    Why we need private health insurance when we can use medicare ????????waste of money.


      Yep it's a scam and very few people would take it up if there wasn't a tax benefit. Basically young people are subsiding the old as they are the ones that use it the most.


        Sort of true really.
        But its also a bargain in some ways
        In private the consultant does your op him/herself

        In medicare the trainee does the op with either direct or indirect supervision depending on the op and how much you trust them.
        So a bigger cut and more pain at best.

        In other countries for a consultant to do your op its x3 the price than here ( if consultant just charges fund with no gap) so it can be a bargain.

        Good funds -hhmmmm - teachers, BUPA , HBF for the bigger ones - GMBH , westfund ok too


          ok im with Teachers so glad to hear it.

          Not sure what countries you are referring to - USA is many multiples more if they can get away with it.
          I used to live in the Netherlands and their health care (and most things) are way cheaper and just as good if not better.
          Over there private health care is compulsory but it also pays for the GP and pharma drugs.
          Hospitals dont seem as busy either - went on a sunday when my gf sprained her ankle and place was empty - right in Amsterdam too.
          I had wisdom teeth out and it was way cheaper than if done here.
          Didnt have an op but I'd bet its prob 1/3 the price, not 3x.
          And the private health cover was pretty similar price to here.


            @Geoff-bargain: I'm UK originally
            the UK is pricier for private as its not as well organised
            yes the netherlands would be good.
            TBH some aussie doctors may price gouge and will ruin it for everyone with the anger it creates
            you must understand how much a doctor charges is not much how good they are - its how much money they want to make
            as a general guide the best docs - who treat other docs - are middle of the road chargers

            i dont gap with my surgeries but many younger female colleagues do - the younger docs want to work less so the punter may have to pay for some docs wanting to work less.


    From April 2019, there is an young adult discount for taking private health insurance before 30. So, please check with your current fund or the new fund on this discount. I know that Medibank already offering this discount but I'm not sure of other funds. At your age, you can probably stick to Basic Hospitals (or the new Bronze cover) instead of spending money on top hospitals cover.

  • Top