What is singles health insurance?
Singles health insurance is a policy that covers one individual who is the sole policyholder and person covered. A singles policy can be suitable for someone who does not have a partner, or indeed for individual members of a couple who want to be covered separately.
Singles health insurance is generally different to policies that cover single parents, who may be covered under a family health insurance policy.
But singles private health insurance is really no different to other types of policy. As a single, you can be covered for anything that couples health insurance could cover, including the likes of pregnancy and birth-related treatments.
What does singles health insurance cover?
Singles health insurance can come in the form of Hospital-only, Extras-only or combined Hospital and Extras cover. As the single policyholder, you can opt for the form of cover that best suits you. Here’s what’s covered by each.
Hospital cover for singles
This covers costs related to being treated as a private patient in a public or private hospital. For example, it might cover the cost of undergoing surgery, including medical costs and related costs like accommodation, transport and even meals while you’re in hospital.
Singles hospital policies come in various tiers: Basic, Bronze, Silver or Gold. The tiers offer varying levels of cover, with Basic offering the least coverage, and Gold being the most comprehensive. The tiers for singles Hospital policies are the same across all providers, meaning a Basic policy from one provider should closely mirror a Basic policy from another insurer.
Extras cover for singles
Extras policies cover single people for certain out-of-hospital treatments and expenses that are not covered by Medicare (like dental and optical). Like Hospital cover, the inclusions and limits on singles Extras will depend on what level of cover you choose.
There’s generally a greater level of flexibility on Extras cover, meaning as the single policyholder you should be able to closely tailor the cover to what you will actually use.
Pros and cons of singles health insurance
Pros
- You can choose the cover level that’s best for you, and you alone
- You may pay less tax if you are covered by private health insurance
- Greater choice and flexibility for receiving healthcare versus the public system
Cons
- Premiums for private health insurance can be expensive
- There are generally still out-of-pocket costs when you receive treatment
- Health insurance can be extremely complicated
How to choose the best singles health insurance policy?
What level of cover is going to suit you best?
For example, do you want Hospital-only, Extras-only or a combined policy? Are there any conditions you definitely need cover for, bearing in mind there will likely be a waiting period of up to 12 months on pre-existing conditions. Finding the best policy is often a case of striking a balance between only paying for the inclusions you are most likely to need, versus having more comprehensive coverage for extra peace of mind.
What’s your budget for premiums?
How much can you comfortably afford to pay in premiums? With this info in mind you do a health insurance comparison among policies in your price range. You might then simply decide to go with the policy that offers the most appropriate level of cover for you, not necessarily the absolute cheapest.
What are the claim limits?
Checking the inclusions on a singles policy is important, but so too is looking at the claim limits on specific services. For example, you might find a policy that ticks all the boxes in what’s covered, but the claim limits may be low. In that case, the policy overall may not be a great fit, or you would need to consider paying more to increase your claim limits.
Are there any special offers?
Singles policies often come with health insurance special offers attached as an incentive for new customers. This might come in the form of money off your premiums in the first year, rewards points, cashback or waived waiting periods on Extras. Finding the best singles policy for your health needs that fits your long-term budget should be the priority, but if you can get a special offer while you’re at it, then why not!
What does singles health insurance cost?
One of the potential disadvantages of health insurance is cost. The cost of a singles health insurance policy will depend on factors like level of cover you choose, your income and your age. The provider you choose, and specifics like the excess you opt for on Hospital cover, will also determine how much you pay.
It’s worth shopping around for singles cover, particularly on Extras where there is generally more variation in the types of policies providers offer.
Below are some examples to give an idea of the potential cost of singles health insurance based on quotes sourced from some of Australia’s largest health funds.
The table shows the cost of health insurance for a single person (aged 35) living in NSW, with an income under $94,000. Quotes are for each provider’s most basic level of hospital care and a medium level of Extras covering at least emergency ambulance, general and major dental, optical and physio.
Singles health insurance cost comparison
Provider | HCF |
|---|---|
Basic Hospital (per month) | $78.78 (Hospital Basic Plus) |
Extras (per month) | $35.05 (Mid Extras) |
Combined Hospital and Extras | $113.83 (HCF Hospital Basic Plus and HCF Mid Extras) |
Provider | HBF |
Basic Hospital (per month) | $80.10 (Basic Hospital Plus) |
Extras (per month) | $35.09 (Flex 50) |
Combined Hospital and Extras | $115.19 (Basic Hospital Plus and Flex 50) |
Provider | Bupa |
Basic Hospital (per month) | $77.92 (Basic Accident Only Hospital) |
Extras (per month) | $38.75 (Core Extras) |
Combined Hospital and Extras | $116.67 (Basic Accident Only Hospital and Core Extras) |
Provider | Nib |
Basic Hospital (per month) | $83.36 (Basic Care Hospital Plus) includes 4% direct debit discount |
Extras (per month) | $35.57 (Core Extras) |
Combined Hospital and Extras | $118.93 (Basic Care Hospital Plus and Core Extras) |
Provider | Australian Unity |
Basic Hospital (per month) | $79.16 (Basic Plus) |
Extras (per month) | $39.95 (Focus Extras) |
Combined Hospital and Extras | $119.11 (Basic Plus and Focus Extras) |
Provider | Medibank |
Basic Hospital (per month) | $86.21 (Basic Accident and Ambulance) |
Extras (per month) | $27.82 (Healthy Start Extras) |
Combined Hospital and Extras | $119.27 Medibank (Basic Plus Healthy Start and Healthy Start Extras) |
Provider | GMHBA |
Basic Hospital (per month) | $82.25 (Basic - Accident Only) |
Extras (per month) | $45.70 (Mid Extras Set Benefits) |
Combined Hospital and Extras | $127.95 (Basic Hospital and Mid Extras) |
| Provider | Basic Hospital (per month) | Extras (per month) | Combined Hospital and Extras |
|---|---|---|---|
HCF | $78.78 (Hospital Basic Plus) | $35.05 (Mid Extras) | $113.83 (HCF Hospital Basic Plus and HCF Mid Extras) |
HBF | $80.10 (Basic Hospital Plus) | $35.09 (Flex 50) | $115.19 (Basic Hospital Plus and Flex 50) |
Bupa | $77.92 (Basic Accident Only Hospital) | $38.75 (Core Extras) | $116.67 (Basic Accident Only Hospital and Core Extras) |
Nib | $83.36 (Basic Care Hospital Plus) includes 4% direct debit discount | $35.57 (Core Extras) | $118.93 (Basic Care Hospital Plus and Core Extras) |
Australian Unity | $79.16 (Basic Plus) | $39.95 (Focus Extras) | $119.11 (Basic Plus and Focus Extras) |
Medibank | $86.21 (Basic Accident and Ambulance) | $27.82 (Healthy Start Extras) | $119.27 Medibank (Basic Plus Healthy Start and Healthy Start Extras) |
GMHBA | $82.25 (Basic - Accident Only) | $45.70 (Mid Extras Set Benefits) | $127.95 (Basic Hospital and Mid Extras) |
Other factors that may impact the cost of singles health insurance
Lifetime Health Cover loading for couples Hospital cover
Depending on your age, you may be subject to the Lifetime Health Cover (LHC) loading, which is an extra cost on top of the standard premiums applied to people aged over 31 who have never had private health insurance.
The loading is 2% on top of your base Hospital cover premium for every year you are aged over 30, based on your age on the 1 July prior to joining. The maximum LHC loading that anyone can pay is 70%, and the loading expires after 10 years of the policyholder having continuous cover.
Government rebate for singles
The government health insurance rebate helps bring down the cost of singles health insurance premiums with tiered rebates based on income (up to an income cap). Lower income individuals qualify for a higher rebate level, as outlined in the table below. The rebates and income levels are for the 2024-25 financial year.
| Income | Rebate % |
|---|---|
$97,000 or less | 24.608% for under 65s 28.710% for ages 65-69 32.812% for ages 70+ |
$97,001 – $113,000 | 16.405% for under 65s 20.507% for ages 65-69 24.608% for ages 70+ |
$113,001 – $151,000 | 8.202% for under 65s 12.303% for ages 65-69 16.405% for ages 70+ |
Age-based discount for couples
If you’re under 30 years old when you take out cover, you may qualify for an age-based discount on your singles health insurance. This is offered by some insurers (not all) and is a percentage discount on your policy premiums.
It’s offered as a 2% discount for every year under the age of 30 you are, with the discount you qualify for at the start of your policy applying until you are 41 years old. After that point it phases out gradually.
Medicare levy surcharge for singles
This is not a cost of your singles health insurance as such, but a cost you might incur if you don’t have a minimum level of Hospital cover. It operates much like income tax and is deducted by your employer each time you are paid. For singles the Medicare levy surcharge is applied based on an individual’s income as follows, according to the ATO:
| Income threshold | Medicare levy surcharge |
|---|---|
$97,000 or less | 0% |
$97,001 – $113,000 | 1% |
$113,001 – $151,000 | 1.25% |
$151,001 or more | 1.5% |
The excess you choose on Hospital cover
Some health insurance providers allow you to nominate a higher excess on Hospital policy to reduce your premiums. The maximum excess for singles is $750 per claim. While increasing your excess could lower your premiums, doing this would mean you will have more to pay if you need to make a claim.
Are two single health insurance policies better than couples cover?
You don’t have to be single to choose a singles health insurance policy. In fact, it’s fairly common for people who are in a couple to each get their own singles health insurance policy. This allows each individual to get the level of cover they need.
It’s also generally no more expensive – in terms of the base premiums – to get separate singles policies versus a couple policy.
Here are some other factors to consider when deciding.
When a singles policy might be best
Probably the main reason individuals in a couple choose singles health insurance is the greater flexibility it offers each individual.
For example, if one partner has complex health needs, that partner could opt for a higher (more expensive) level of cover, while a lower (less expensive) level of cover might be sufficient for the other partner. In that scenario, getting a high level of health insurance covering both partners may not be necessary and may cost more than purchasing two singles policies.
When a couples policy might work out better
If you have similar needs to your partner, a couples policy can be more convenient (one end of financial year statement etc). Having combined claim limits on a couples policy can also be handy if one partner uses a particular service a lot.
It may also work out cheaper to get couples cover, depending on your income and age. For example, a higher level of government rebate could apply to a couples policy (benefitting both partners) if just one of the partners is eligible for a higher rebate.
