Aussies hit with higher out-of-pocket payments 

Australians with Private Health Insurance are paying higher out-of-pocket payments for hospital treatment than a year ago, new data shows.  

The latest statistics from Australian Prudential Regulation Authority (APRA), which regulates the health insurance industry, show out-of-pocket fees for private hospital treatment increased by 8% in the 12 months from October 2023 to September 2024. The average out-of-pocket payment paid by Aussies is now $432.14, compared with $400.10 in September 2023. The most expensive out-of-pocket fees were for orthopaedic procedures, with Aussies paying an average Gap of $707.78. 

And while Aussie households are under increased financial pressure, it seems the majority of people are not dropping their health cover. Data shows the number of people with Hospital Cover and Extras Cover increased slightly in the June to September 2024 quarter.  

Meanwhile, the amount insurers spent on Hospital Cover claims increased by 7.5% over the 12 months to September 2024, with more than $18.4 million spent. Extras Cover claims were up 5.7% over the same period, amounting to more than $6 million spent by insurers.  

Access the full APRA report here. 

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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