Need to know
- We've found the most expensive standard Gold policies in Australia – if you have one of these policies, you can get a cheaper deal elsewhere
- You should compare prices on your health insurance every 12 months or so – taking advantage of introductory offers and switching to a better deal can save you hundreds
- The CHOICE health insurance finder is the best place to compare prices as we cover the most funds and we're the only nonprofit consumer advocate comparison site
Have you unknowingly ended up with one of the country's most expensive health insurance policies?
Health insurance is a major monthly expense, and with premiums going up by 3.03% on average on 1 April (despite policies staying mostly the same), it's yet another cost that keeps creeping higher. If you think paying more and more for the same product sounds like a bad deal, we agree!
That's why we've made a list of the most expensive Gold policies in each state, and crunched the numbers to show you how much you could save if you switched to the cheapest equivalent Gold policy. Singles could save up to $1870 per year, and if you're a couple or a family, the savings are even greater.
Premiums to increase further in 2024
With insurers set to increase their prices on 1 April, it's vital to check that you have the best value policy for your needs.
If you haven't switched in a while or you took up health insurance during the COVID-19 pandemic, now's the time to reassess your situation. What was once a great deal when you signed up may no longer be the cheapest on offer.
You can also make extra savings by prepaying your annual premium upfront before the price rises come into effect and by taking advantage of introductory offers for new customers, such as a certain number of weeks of free cover. Check out some of the promo offers we found.
And remember that when you switch to a policy with the same level of hospital cover as your current policy, your waiting periods won't be affected.
How to find the best deal on your health insurance
CHOICE health insurance expert Uta Mihm recommends checking to see if you can get a better deal on your health insurance at least once every 12 months, or any time you get a letter from your fund about an increase to your premium.
"It takes just five minutes and can save you hundreds, or even thousands," she says.
"The CHOICE health insurance finder is the best place to compare prices as we cover the most funds and we're the only nonprofit consumer advocate comparison site.Commercial sites are not independent and only show you their signed-up paying insurers' policies."
The same cover with a different insurer can often be hundreds of dollars cheaper
CHOICE health insurance expert Uta Mihm
When comparing prices, either on a comparison site or through your own research, Uta advises that you make sure you're comparing apples with apples by selecting the correct level of rebate you're getting from the government and the same excess.
"The same cover with a different insurer can often be hundreds of dollars cheaper," she says.
The most expensive Gold policies in Australia
ACT & NSW
- Health Partners, Gold Hospital Advantage: $4210
- AHM, Advanced Hospital Gold: $3970
- NIB Qantas, Gold Top Hospital: $3800
Northern Territory
- Westfund, Gold Complete: $2920
- Mildura, Five Star Gold – F4: $2640
- Health Partners, Gold Hospital Advantage: $2630
Queensland
- Health Partners, Gold Hospital Advantage: $4400
- AHM, Advanced Hospital Gold: $4210
- Bupa, Gold Comprehensive Hospital: $4150
South Australia
- Health Partners, Gold Hospital Advantage: $3760
- AHM, Advanced Hospital Gold: $3730
- Bupa, Gold Comprehensive Hospital: $3550
Tasmania
- Health Partners, Gold Hospital Advantage: $4290
- AHM, Advanced Hospital Gold: $4010
- Bupa, Gold Comprehensive Hospital: $3810
Victoria
- Health Partners, Gold Hospital Advantage: $4510
- AHM, Advanced Hospital Gold: $4380
- NIB Qantas, Gold Top Hospital: $4250
Western Australia
- Health Partners, Gold Hospital Advantage: $3650
- Bupa, Gold Comprehensive Hospital: $3440
- HBF, Gold Hospital Elevate: $3360
Note: Prices are for a single Gold policy with $750 excess, per year, rounded to the nearest $10. Figures do not include the health insurance rebate or discounts. Source: data.gov.au as of February 2024.
As you can see from our results, the most expensive policies for standard Gold cover are often from the big funds.
"A great tip to save money on health insurance is to look beyond the well-known funds that spend lots on advertising, and consider smaller insurers that are often nonprofit," says Uta.
A great tip to save money on health insurance is to look beyond the well-known funds that spend lots on advertising, and consider smaller insurers that are often nonprofit
CHOICE health insurance expert Uta Mihm
All funds allow you to prepay your premium at the current rate for at least 12 months, so if you prepay your full annual premium before the date of the increase, you can delay paying a higher premium for 12 months, leaving more cash in your pocket.
Here's how much you could save in each state by switching from these pricey policies to the cheapest equivalent policy.
How much can you save on a standard Gold policy?
- Australian Capital Territory and New South Wales: $1570.
- Northern Territory: $810.
- Queensland: $1760.
- South Australia: $1120.
- Tasmania: $1650.
- Victoria: $1870.
- Western Australia: $1040.
Potential savings are based on comparing the most expensive Gold hospital policies with the cheapest, with at least the same cover and the same excess. We looked at annual policies for a single person, with no health insurance rebate.
The most expensive Silver policies
The largest savings are available for Gold policyholders, but if you have a Silver policy, you can also likely find a cheaper deal that will give you the same cover.
"When we looked at the most expensive Silver policies across Australia, we found that if you hold one of those pricey policies, you could save anywhere from $240 up to $1170 per year by switching," says Uta.
... if you're switching to a policy with the same level of cover, your waiting times won't be affected
CHOICE health insurance expert Uta Mihm
"That's money you could have back in your pocket simply by doing a little research and making a phone call or two.
"Many health insurance funds will manage the switching process for you too, so once you sign up with them, you don't have to call your old insurer to cancel – they'll manage it for you. And if you're switching to a policy with the same level of cover, your waiting times won't be affected," she explains.
How much can you save on a standard Silver policy?
- Australian Capital Territory and New South Wales: $240.
- Northern Territory: $1170.
- Queensland: $310.
- South Australia: $255.
- Tasmania: $320.
- Victoria: $180.
- Western Australia: $560.
Potential savings are based on comparing the most expensive Silver hospital policies with the cheapest, with at least the same cover and the same excess. We looked at annual policies for a single person, with no health insurance rebate.
If you're looking to save money on your premiums, Uta also recommends considering a higher excess when asking for quotes.
"If you're currently paying a premium with a $500 excess (this is the amount you'd have to pay if you make a claim) and you don't anticipate having surgery or needing hospital treatment in the next one or two years, you can save money by increasing your excess to $750," she says.
We care about accuracy. See something that's not quite right in this article? Let us know or read more about fact-checking at CHOICE.
Stock images:Getty, unless otherwise stated.
