What’s the best health insurance for Aussie seniors? 

If you’re aged 60-plus, you might be hearing a few more creaks and groans from your body than you used to, and you may be finding yourself attending more medical appointments than in previous years. For that reason, you might be considering getting private health insurance. And if you already have health cover, you may be wondering whether you’ve got the best value policy to cover your changing needs (that doesn’t cost you an arm and a leg).  

Unfortunately, your likelihood of facing health challenges increases with age, with the last census finding that 61.4% of Australians who live with a long-term health condition are aged 65 to 84, and 73.1% are 85-plus. The good news is that your senior years is the time when you get the most value from your health insurance. According to Professor Luke Connelly, Professor of Health Economics at the University of Queensland, after the age of 55 you get more back for every dollar you spend on health insurance. Even so, you’ll want to choose your policy wisely, especially when it comes to price and benefits. 

Using the healthslips.com.au Calculator, we found there’s a huge variety in health insurance policies for seniors. For example, a Victorian couple in their 70s could pay as much as $962.41 per month for Silver tier cover, or as little as $385.26. So it’s important to do your homework.  

Do seniors need health insurance? 

While you’ll always receive free treatment in public hospitals under Medicare, Hospital Cover gives you peace of mind that you’ll be able to skip waiting lists for common procedures in your senior years. For example, the wait for a hip replacement in the public system averages 153 days, but if you have Hospital Cover you can go to a private hospital, choose your own surgeon and likely get your own room. In short, you’ll get back on your feet, and back to doing what you love, much more quickly. 

And if you have Extras Cover, you’ll be able to claim for things like dentures, hearing aids and occupational therapy. Both Hospital Cover and Extras Cover will also cover you for ambulance treatment, which can be expensive if you don’t have health insurance (unless you live in Queensland or Tasmania, where ambulance treatment is free). You could also choose standalone Ambulance Cover.  

Thankfully, having pre-existing conditions or increased health needs doesn’t mean you’ll pay more for health insurance. Private Health Insurance in Australia is ‘community rated’ rather than ‘risk rated’, which means insurers cannot charge you more for your previous claim history or how frequently you need healthcare. So your age doesn’t mean paying higher premiums. 

What does community rated mean?

Our easy-to-follow article walks you through the steps of choosing health insurance for seniors.

How do I choose a seniors health insurance policy? 

The right health insurance policy for seniors will depend on your unique circumstances, including your health needs and income. As a starting point, think about what level of cover you want. Are there procedures or conditions that you expect to need in the near future? Look for a tier of insurance that includes the cover you need, and check that the limits suit your requirements. For example, if you think you might need hearing aids in the coming years, look for Extras Cover that offers this. Our Calculator found the cheapest Extras policy that included hearing aids cover for a single 75 year old in New South Wales was $15.10 per month, compared with $201.17 per month for the most expensive.  

What tier of health insurance includes the treatments I need?

You also need to consider: 

• Your budget 
• Who will be covered – just you? Or do you need a couples policy for you and your partner? 
• Will you need Hospital Cover only? Or just Extras? Or perhaps both?  

From there, you’ll need to search from all policies on the market to find the best one (including insurers who offer specialised policies for seniors). Thankfully, healthslips.com.au makes it quick and easy to do just that – and we’re the only health insurance comparison website that searches all 50 insurers for you, with free open access to all our information and comparisons.  

Try our free Calculator to find the policy that meets your needs.

How much does health insurance for seniors cost?  

The cost of health insurance will depend on the policy you choose. Since there’s a big variation in prices, it’s well worth using our Calculator to make sure you’re getting the best deal for your needs. We also recommend you review your health insurance regularly to see whether it’s right for you, especially if your circumstances have changed, e.g. your relationship status or your health needs. 

The good news is health insurance premiums may be cheaper after the age of 65 for those on lower incomes, thanks to the Private Health Insurance Rebate. This rebate, which applies to Hospital, Extras and Ambulance Cover, is the government’s way of making health insurance more affordable. If you’re eligible for the Private Health Insurance Rebate, you can choose to pay cheaper premiums on your insurance or claim the refund on your annual tax return. There are a few different brackets for the Private Health Insurance Rebate so check your eligibility here. 

It’s important to note that if you’re taking out health insurance for the first time, you’ll have to pay the Lifetime Health Cover Loading (LHCL) which could make your premiums more expensive than you anticipated. LHCL adds up to an extra 2% for every year over the age of 31 that you haven’t had continuous health insurance, capped at 70%, and remaining in place for 10 years.  

Calculate your Private Health Insurance Rebate and Lifetime Health Cover Loading.

Trudie McConnochie

Writer and Researcher

Knowledge is power – that’s the guiding principle behind everything Trudie writes, and it’s a philosophy she brings to her work at healthslips.com.au. By breaking down complex information into easy-to-understand blogs and stories, she aims to empower Australians to make the best choices and an informed decision around private health insurance.

Trudie understands firsthand some of the complexity of private health insurance having moved to Australia from New Zealand and having to navigate a vastly different public healthcare system and health insurance structure.

Trudie holds a Bachelor of Communication Studies (journalism major) from the Auckland University of Technology.

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