Private health insurance

Many Australians buy private health insurance and about half of the population are covered for hospital and/or ancillary benefits. Unlike countries such as the United States of America and Germany, Australia has almost no employer-based health insurance schemes.

A 30% subsidy (approximately)is provided to individuals who acquire private health insurance and has introduced Lifetime Health Cover to encourage lifelong participation in private health insurance.

Lifetime Health Cover recognises the length of time a person has had hospital cover, such that people who take out hospital cover before the age of 30, and maintain their hospital cover, will pay lower premiums throughout their life compared to someone who joins when they're older.

Private health insurance can cover private and public hospital charges (public hospitals charge only patients who elect to be private patients in order to be treated by the doctors of their choice), and a portion of medical fees for inpatient services. Private insurance can also cover allied health / paramedical services (such as physiotherapists’ and podiatrists’ services) and some aids and appliances (such as spectacles). Private health insurance does not usually cover medial fees for general practice (family physician) services.