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Health Insurance Types

Name: Health Insurance Types
Creator: Savvy
Published: 2023-03-30T17:24:14+10:30

Find out the different types of health insurance available in Australia and compare quotes through Savvy.

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Written by , updated on July 6th, 2023

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There are several different types of health insurance available in Australia depending on whether you’re a permanent resident, a visitor or an overseas student. As such, it’s important to find out which form of cover will be most appropriate for your health insurance needs.

You can compare quotes for health insurance from a panel of trusted insurers offering a wide selection of cover options in one place through Savvy. Consider the different types of cover available, get instant free quotes and buy the policy you’re after through us today.

What types of health insurance are available in Australia?

In Australia, there are various types of health insurance available to suit different needs and budgets. Understanding the differences between each type can help you choose the right one for you and your family. These include:

Hospital cover

The most common type of health insurance is hospital cover, which can cover the cost of in-hospital treatments, surgeries and accommodation as a private patient. Hospital cover typically includes treatment in a private hospital, but may also cover some public hospital treatments as well. The coverage it offers will depend on the policy tier you purchase, with four options ranging from basic to bronze, silver and gold.

Extras cover

Extras cover, also known as general or ancillary treatment cover, can provide benefits for services that are typically not covered by Medicare, such as dental, optical, physiotherapy, and chiropractic treatments. Extras cover usually has a range of benefit limits and waiting periods. While insurance tiers aren’t regulated in the same way as hospital cover, offers typically range from cheaper policies with less coverage to more expensive ones with more benefits and higher limits.

Combined hospital and extras

Combined hospital and extras cover provides both hospital and extras cover in one policy. This type of policy may offer more convenience when it comes to dealing with your insurer for both in-hospital and out-of-hospital treatments and services.

Ambulance cover

Ambulance cover can offer cover for emergency ambulance services and transport, both by air and road, which can be costly if not covered by your health insurance (or a state government scheme).

Overseas Visitors Health Cover

Overseas Visitors Health Cover (OVHC) is designed for visitors to Australia who aren’t eligible for Medicare as part of their visa. This type of cover can provide hospital benefits for certain treatments during your stay in Australia, as well as potentially offer cover for out-of-hospital treatments such as dental and physio.

Overseas Student Health Cover

Adequate Overseas Student Health Cover (OSHC) is generally compulsory for those applying for student or graduate visas which will enable them to study in Australia. It's often necessary to pre-pay for student health cover for the entire study period to satisfy visa conditions.

How do I find the right type of health insurance for my personal circumstances?

Ultimately, the type of health insurance you choose will depend on your individual needs, budget, and health status. Whether you're looking for comprehensive cover or just basic protection, there's a health insurance policy in Australia that can meet your needs.

It's important to note that health insurance providers may offer different levels of coverage within each type of policy, so it's important to review the policy details carefully before making a decision.

If having comprehensive health cover is a priority for you, look for the highest tiers of hospital cover, such as silver or gold policies, and more expensive extras plans. These offer the highest level of benefits and widest coverage for different clinical categories. If you're on a tight budget, you could consider a basic hospital or extras policy, which provides more limited benefits at a lower cost.

Of course, if you’re looking for health insurance to satisfy your visa conditions, you’ll either need to take out an OVHC or OSHC policy. Make sure the policy you choose meets any conditions relating to ‘maintaining adequate health insurance’.

Savvy can help you choose the most appropriate health insurance policy for your needs from our panel of leading insurers by enabling you to compare a wide variety of health insurance policies. You can start the free online quote process through us today.

Types of health insurance

Hospital cover

This can help you pay for medical treatment if you need to be admitted to hospital. It can help cover the cost of your admission or accommodation and the fees charged by doctors, surgeons and anaesthetists. It can also cover other costs associated with a stay in a private hospital.

Extras cover

This helps cover the costs of health care treatments outside a hospital setting which aren’t covered by Medicare. This can include major and minor dental treatment, orthodontics, hearing aids, physiotherapy, glasses, contact lenses and podiatry (in most cases with annual limits).

Cover for singles

This is a standard health insurance policy designed for a single person, rather than being tailored to cater to the needs of a couple or family. It may include hospital cover plus extras, or either of these types of insurance on their own, depending on what you're after for your health cover.

Cover for families

A family health insurance policy is designed for a family unit including dependent children who may reach up to 31 years of age with some insurers. It offers private health insurance suitable for the whole family and may include shared limits for all members included in your policy.

Cover for seniors

A health insurance policy aimed at seniors is designed to appeal to people who are in the second half of their life. These are often specific Silver Plus policies that offer the same cover as other health insurance policies, with the exception that pregnancy and childbirth cover may not be included.

OVHC

Visitors who are in Australia on a temporary basis for travel, work or study may be able to take out Overseas Visitors Health Cover (OVHC). Many visas issued in Australia come with a requirement to take out this type of insurance, which covers visitors who may not be covered by Medicare.

Ambulance cover

Ambulance cover is generally available either packaged into your private health insurance or on its own as a separate policy or subscription. By having this protection, you could be covered for all eligible ambulance travel in Australia (subject to your insurer's terms and conditions).

Basic hospital cover

The cheapest and most barebones form of private hospital insurance, this can include cover for rehab, in-hospital psychiatric services and palliative care. Having this policy will enable you to avoid paying the Medicare Levy Surcharge (MLS) and Lifetime Health Cover (LHC) loading.

Bronze hospital cover

Bronze hospital cover is a step up from basic insurance, including 18 further clinical categories such as ear, nose and throat, bone, joint and muscle, digestive system, joint reconstructions, gynaecology and chemotherapy, radiotherapy and immunotherapy for cancer.

Silver hospital cover

Silver hospital cover is the second-most expensive type of policy and offers the second-most clinical categories. On top of what's offered by basic and bronze cover, it also includes heart and vascular system, lung and chest, blood, hearing device implantation and dental surgery.

Gold hospital cover

The highest level of private hospital insurance available in Australia, gold policies can offer cover for pregnancy and birth, weight loss surgery, assisted reproductive services and insulin pumps on top of all the categories provided by silver, bronze and basic hospital insurance.

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Frequently asked questions about types of health insurance

What’s the best type of health insurance for an Australian resident with diabetes?

The best type of health insurance for an Australian resident with diabetes would likely be a policy which provides coverage for insulin pumps, continuous glucose monitoring devices and other diabetes management tools. When choosing the right type of insurance for a diabetic, it's important to compare policies and check for exclusions related to pre-existing conditions, waiting periods and benefit limits.

Will I also have to pay for Overseas Visitors Health Cover in advance?

Yes – you'll usually have to pay for OVHC at least a month in advance. Some policies even require payment for the full term of cover upfront, which can range from a few weeks to many months. However, some providers may offer payment plans or the option to pay in instalments, depending on the length of the policy. It's important to check the payment options and terms of the policy before purchasing OVHC to ensure it meets your needs and budget.

Is it possible to buy ambulance cover on its own?

Yes – it’s possible to buy ambulance cover on its own, but it may also be available as part of other health insurance policies, which may include hospital cover or a combined hospital and extras policy.

Can I claim the cost of private health insurance as a tax deduction?

In Australia, it's possible to claim a certain percentage tax deduction for the cost of your private health insurance policy. This is known as the Medicare Rebate and is age and income dependent. Specific rules and eligibility criteria for claiming a deduction can vary, so it's best to check with the Australian Taxation Office or a qualified tax professional for more information.

What is self-funded health insurance?

With self-funded health insurance, the individual or family sets aside a specific amount of money each month to cover their healthcare expenses, and assumes the responsibility of paying for all their own medical needs. This is different from private health insurance, which involves paying regular premiums to a private health insurance company.

Health insurance by age group

Babies

Kids

Young adults

Under 30s

Over 50s

Over 60s

Over 65s

Over 70s

Helpful health insurance guides

Looking for health insurance to cover your condition or treatment?

Read one of our helpful guides on a range of different ailments and potential hospital or extras treatments to help you find out if they're covered.

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