Can I get help paying for health insurance?

If your household is under financial pressure, you’re not alone. Amid the rising cost of living, many of us are looking for ways to cut spending, including reducing health insurance costs.  

Of course, one of the best ways to reduce the cost of your health insurance premiums is to look for a cheaper policy – and if you use our Calculator, you’ll be able to access insurers and policies that don’t show up on other health insurance comparison websites. We found that there’s a massive $4,327.20 difference per year between the cheapest and most expensive basic policy for a couple in Victoria, so looking for cheaper alternatives could make a big difference to your financial situation.  

If you need extra support paying for health insurance beyond changing your policy, read on. 

Taking a break from health insurance 

Not many people are aware of this, but some insurers do allow you to take a break from your health insurance due to financial hardship, or if you or your partner become unemployed. You can suspend your health cover for short periods of at least two months, or longer periods (usually up to two years). Keep in mind that you won’t be able to claim for healthcare costs while your policy is suspended. 

If your application to take a break from insurance is approved, there are a few things you should know:  

• Medicare Levy Surcharge: If you earn more than $97,000 a year as a single person, or $194,000 as a couple or family per year, and you’ve suspended your Hospital Cover, you’ll have to pay the Medicare Levy Surcharge (MLS) at tax time.  
  Learn more about the MLS. 
• Lifetime Health Cover Loading: If you take a break from health insurance that’s longer than 1,094 days (around three years), you’ll need to pay the Lifetime Health Cover Loading when you resume your policy. This applies even if you’ve never paid the Lifetime Health Cover Loading before, or you’ve paid 10 years of Loading in the past.
  Find out more how your ‘Days of Absence’ from health insurance are calculated. 

Every insurer has a different process for suspensions, so contact your insurer to find out how to apply. Whatever you do, don’t simply stop paying for health insurance. 

Financial arrangements 

Health insurers offer a range of financial assistance options, which could take the form of payment plans, temporarily deferred payments and more. They may ask for evidence, such as a letter from your employer or loan statements. It’s best to contact your insurer before things escalate, and they’ll let you know what support is available. 

How to contact your health insurer.

Getting financial support 

Beyond health insurance, if you’re struggling financially, you can get help from a financial counsellor for free by calling the National Debt Helpline on 1800 007 007 between 9.30am and 4.30pm eastern time Monday to Friday, or using the live chat between 9am and 8pm Monday to Friday.  

Financial stress can take a toll on your mental wellbeing too, so if you need emotional support, contact Beyond Blue on 1300 22 46 36 or use the live chat. Lifeline is available on 13 11 14 or through live chat. Both services are available 24/7. 

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.

Read more.