Health Insurance for Young Australians: Budget Options
Do Young People Need Health Insurance?
If you're under 30, healthy, and not earning enough to trigger the MLS, you might wonder why you'd pay for health insurance. The main reasons to consider it:
- Avoid LHC loading later: If you delay past 30, you'll pay 2% extra per year when you eventually take out cover. Starting early keeps your premiums low for life.
- Young adult discounts: Many funds offer 10 — 20% off for ages 18 — 29, making cover surprisingly affordable.
- Peace of mind: Accidents happen. Hospital cover gives you private hospital access if needed.
Young Adult Discounts
Most major health funds offer discounts for young adults:
- Bupa: Up to 10% off for ages 18 — 29.
- Medibank: Up to 10% off (Live Better program benefits).
- HCF: Up to 12% off for ages 18 — 29.
- NIB: Up to 10% off for ages 18 — 29.
- HBF: Discounts for 18 — 25 year olds.
- ahm: Budget brand of Medibank, often the cheapest option for young singles.
These discounts apply to both hospital and extras cover. Some apply automatically, others need you to ask.
Best Policies for Young Singles
For most young people, a Bronze hospital policy with basic extras hits the sweet spot:
- Bronze hospital cover costs around $80 — $120/month (with young adult discount).
- It covers common procedures like wisdom teeth removal, hernia repair, and appendectomy.
- It counts toward LHC and MLS obligations.
- Adding basic extras ($15 — $25/month extra) covers a couple of dental check-ups and glasses per year.
Should You Get Extras?
If you visit the dentist once or twice a year and wear glasses or contacts, basic extras will likely pay for itself. Many young people also use extras for:
- Physiotherapy (sports injuries)
- Psychology sessions (mental health support)
- Acupuncture or remedial massage
How to Save as a Young Adult
- Compare annually: Your needs change. The cheapest policy this year may not be best next year.
- Choose a higher excess: $500 excess on Bronze cover can cut your premium by 20 — 30%.
- Consider ahm or budget brands: Often $10 — $20/month cheaper than major funds for equivalent cover.
- Check if you're still on your parents' policy: You can stay on a family policy until age 25 (or 31 if a full-time student in some states).
When to Upgrade
As your income and needs grow, consider upgrading your cover. If you get married, plan a family, or start earning over $93,000, review your policy. Our policy guide can help.
The Numbers That Matter in 2026
Three figures should drive your decision. First, the MLS threshold: singles earning over $101,000 in 2025–26 ($105,000 from 1 July 2026) pay a 1–1.5% surcharge without hospital cover — a $110,000 earner would owe about $1,375 a year. Second, LHC: the 2% loading starts accruing from 1 July after your 31st birthday, and a Bronze policy taken out at 25 costs far less over a lifetime than the same policy at 35 with a 20% loading. Third, premiums: the average rise of 4.41% on 1 April 2026 hit young adult policies too, but the 10–20% young adult discounts most funds offer still make cover unusually cheap in your 20s.
Why Starting Early Beats "I'm Healthy"
Private health insurance for a healthy 24-year-old is not really about this year's claims — it is about the mechanism of the loading. LHC makes your future premiums depend on your past decisions: every year without hospital cover after 30 adds 2% to your premium for a decade once you finally buy. The cheapest strategy is to hold a complying Basic or Bronze policy before the base day, then upgrade when your life actually needs it. You also get immediate value: ambulance cover in most states, and private treatment for accidents and wisdom teeth rather than public waitlists.
Your Action Plan
- If you are under 30 with no cover, get a Basic or Bronze hospital policy before your LHC base day.
- Ask for the young adult discount (10–20% at most funds) — some require you to request it.
- Add basic extras only if you use dental or optical regularly.
- Set a $500+ excess to keep premiums low while you are healthy.
- Revisit your cover when your income approaches the MLS threshold.