Health Insurance For Under 30s
Compare health insurance options for under 30s through Savvy today.
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You may have been covered under a family health insurance policy for most of your life, but are now looking for your own health cover. If so, you can compare options for health insurance as a young person aged under 30 here through Savvy.
You can consider different policies available from a panel of leading Australian health insurers and compare them side-by-side to see if they offer the cover you’re looking for. Get your health insurance needs sorted through Savvy today.
What health insurance options are there for under 30s?
Even if you’re still young, fit and healthy or aged under 25, there are plenty of reasons to look at private health insurance before you reach the age of 31. Up until this time, you may have been covered under a family health policy taken out by your parents. However, if you’re no longer living at home or considered a dependant, it’s time to consider your own health insurance policy.
There are three main types of health insurance you can choose from. You can either buy each type separately or, more commonly, as a package. They are:
- Hospital cover – this can help you pay for the cost of being treated as a private patient, either in a public, or private hospital. It can cover some of the costs of hospital admission, such as the cost of a private room (if available), in-patient doctor’s and surgeon’s fees, any tests undertaken while you’re an in-patient and medications supplied to you while you’re in hospital. You can choose from four levels of cover: basic, bronze, silver and gold. A basic hospital policy is the cheapest form of health insurance you can take out if you wish to avoid paying the Medicare Levy Surcharge, which is an additional tax you’ll have to pay if you earn over $90,000 p.a. as a single and don’t have any private health insurance. The best health insurance coverage for you will be a policy that offers the most suitable inclusions for your needs at the most affordable price.
- Extras cover – this can help pay for your healthcare in areas that aren’t subsidised by Medicare, such as dental, physiotherapy and chiropractic services. There are also different levels of cover available, ranging from cheaper policies with less cover to more expensive offers which provide comprehensive coverage. Again, the best policy for you will depend on your current health needs and which healthcare services you regularly use.
- Ambulance cover – as its name suggests, this insurance helps with the cost of being transported to hospital. If you don’t have ambulance cover and live in a state where it isn’t free, a ride to hospital in an ambulance could end up costing thousands of dollars.
How long can I stay on a family health insurance policy?
This will vary according to which health fund provider your parents have their family policy with. The Australian Government changed the rules in 2021 so that young people who are still dependents and living at home can stay on a family policy up to a maximum age of 31, provided they satisfy the required eligibility criteria. However, it isn’t compulsory for health insurers to allow dependents to stay on their parents’ policy for that long, so some still have a maximum age of 25 or lower.
You can compare the cost of various health insurance policies in one place through Savvy. Get started by filling out a simple online form and consider offers from a panel of leading insurers today.
Is there any government assistance to help those under 30 with the cost of health insurance?
There are three financial incentives which may help young people aged under 30 afford their own health insurance. These are:
Private Health Insurance Rebate
You may be entitled to a private health insurance rebate if you have adequate private health insurance, although this depends on your income. For government purposes, an ‘adequate’ policy is a hospital cover policy for singles with an excess of up to $750. This rebate is a percentage of the premiums you pay for your health insurance. For singles:
- If you earn under $90,000, your rebate percentage will be 24.60%*
- If you earn between $90,001 and $105,000, your rebate percentage will be 16.40%*
- If you earn between $105,001 and $140,000, your rebate percentage will be 8.20%*
- If you earn $140,001 or more, you aren't entitled to a private health insurance rebate*
You can either claim this rebate back as a lump sum at tax time or from your health fund in the form of reduced premiums across the year.
Age-based premium reductions
If you’re aged under 31, you may be able to access an age-based reduction in the cost of your private health insurance premiums through some providers. This reduction is 2% for each year you have a hospital cover policy under the age of 30, capped at a maximum of 10%. For example, if you’re 27 when you first take out a hospital cover policy, you may be able to purchase it 6% cheaper than someone aged in their 40s (three years under the age of 30 multiplied by 2% per year). This discount may stand until you reach 41.
Reduction in Medicare Levy for low-income earners
If you’re still studying and only working part-time or a few hours a week, you may be entitled to a reduction in the amount of Medicare Levy you have to pay. Almost all income earners in Australia have to pay a 2% Medicare Levy. Your employer will usually take an amount out of each payslip to cover the cost of the Medicare Levy. However, if you're a low income-earner, you may not have to pay the Levy or the amount you have to pay may be reduced.
If you’re single and earning less than $23,365, you don't have to pay the Medicare Levy. If you earn between $23,365 and $29,207, you’ll be entitled to a reduction in the amount you’re required to pay, which the ATO will work out for you at tax time*.
*All figures are correct as of March 2023 but subject to change.
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