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8 Best Private Health Insurance in Australia

Jodie Price

By Jodie Price | Updated October 3, 2025

Choosing the right private health insurance in Australia can feel overwhelming, but the best providers offer value, flexibility, and reliable support. Comparing hospital, extras, and combined cover options helps you find a policy that fits your needs and budget, providing peace of mind.

  • Phoenix

    Phoenix shows strong performance with a hospital cover member retention rate of 83.9%. It also offers 91.1% of general medical services with no-gap payments, helping members avoid unexpected out-of-pocket costs.

    Why We Picked It

    You gain access to robust hospital coverage, with many services featuring no-gap payments and high contribution returns for members. Extras like dental, optical, and physiotherapy can also be included, helping reduce out-of-pocket costs. Flexible excess choices let you balance upfront and ongoing expenses to suit your budget.

    The provider stands out for its competitive premiums and high member satisfaction, with strong retention rates and excellent customer reviews. Wait times are standard—two months for most treatments and up to 12 months for pre-existing conditions, pregnancy, or birth. Discounts are available for younger members, making policies more affordable.

    Customer support is highly rated, with straightforward claims processes and electronic claiming available through many providers. Strong consumer feedback and no Ombudsman complaints further highlight its reliability and focus on member experience.

    Pros & Cons

    Pros:

    • Wide choice of hospital and extras cover
    • Competitive pricing compared to larger insurers
    • Flexible excess options to adjust costs
    • Easy online claims and electronic processing
    • Good coverage for common extras like dental and optical

    Cons:

    • Fewer high-end hospital policy options than large insurers
    • Limited brand recognition compared to bigger providers
    • Some extras limits may be lower than competitors
    • Smaller hospital network in regional areas
    • May not offer as many bundled discounts as larger funds

  • NIB

    NIB has a hospital cover member retention rate of 81.3%, showing steady customer loyalty. It also provides strong value with 91.7% of general medical services offered as no-gap, helping members keep out-of-pocket costs low.

    Why We Picked It

    This provider offers flexible hospital and extras cover, with wait times of around two months for most services. It returns over 80% of member contributions and allows you to choose your preferred providers, unlike some insurers that require you to use allocated services. Extras coverage is also strong, with one of the higher benefit rates in the market.

    It’s a practical option for both locals and international students, offering policies that meet visa requirements as well as affordable entry-level and comprehensive plans. The addition of travel insurance under the same brand can make it easier to manage multiple types of cover.

    Digital tools and online claim options add to the convenience, letting you manage your policy on the go. Customer feedback varies, with some reviews rating the service lower than competitors. It’s important to keep this in mind along with affordability and benefits.

    Pros & Cons

    Pros

    • Wide choice of hospital and extras cover
    • Options for international students and visitors
    • Competitive pricing compared to some larger insurers
    • Easy-to-use mobile app and online services
    • Offers travel insurance alongside health cover

    Cons

    • Some lower-cost policies may have limited hospital networks
    • Extras cover can have lower annual limits than competitors
    • Not as many in-person service locations as Medibank
    • Premiums, like all insurers, can increase yearly
    • Comprehensive cover may still be costly for families

  • HBF

    HBF shows strong customer loyalty with a hospital cover member retention rate of 88.9%. It also offers excellent value on medical services, with 93.1% of general medical claims provided as no-gap, helping reduce members’ out-of-pocket expenses.

    Why We Picked It

    HBF is a not-for-profit health fund that reinvests into member benefits rather than shareholders, which can help keep premiums competitive. It offers hospital-only, extras-only, and combined policies, with extras such as dental, optical, and physiotherapy. The fund also covers over 93% of general medical charges and has a member retention rate of nearly 89%.

    You may also find value in HBF’s no-gap dental arrangements and broad hospital network, which reduce out-of-pocket expenses and improve access to care. For members switching from another fund, waiting periods are often waived if you maintain similar cover, making the transition smoother.

    However, HBF has faced a high number of complaints and mixed reviews, with recent reports noting higher-than-average management expenses. While many members appreciate the coverage, service quality has been flagged as an area for improvement.

    Pros & Cons

    Pros

    • Not-for-profit structure focused on member value
    • Wide range of hospital and extras cover options
    • Strong no-gap dental network across Australia
    • Recognizes waiting periods when switching from another fund
    • Long history and reputation as a stable provider

    Cons

    • Limited national retail branches compared to larger insurers
    • Some extras benefits may have lower annual limits than competitors
    • Premiums can still rise yearly in line with industry increases
    • Certain hospital policies may require co-payments or exclusions

  • St Lukes

    St Lukes maintains a strong hospital cover member retention rate of 88.6%, showing steady customer trust. It also offers 88.9% of general medical claims as no-gap services, helping members reduce additional healthcare costs.

    Why We Picked It

    St Lukes is a smaller health fund with just 0.6% market share, but it performs on par with larger providers. It offers hospital and extras cover with a standard two-month waiting period, though some conditions have longer waits. The fund excels in coverage, with 91% for hospital services and 55.5% for extras, but has a management fee of 13.3%, which is relatively higher than competitors.

    Members benefit from the fund’s reinvestment model, with 82.7% of contributions returned as benefits. This approach helps keep premiums competitive while still offering flexible policy options.

    St Lukes is also known for its member-first focus, with many customers praising its communication and claims process. While reviews are generally positive, some negative experiences have been reported, so it’s worth comparing before choosing.

    Pros & Cons

    Pros:

    • Not-for-profit model means funds go back into member benefits.
    • Customisable cover lets you choose hospital, extras, or combined policies.
    • Good customer service with a reputation for clear communication.
    • Competitive pricing compared to some larger funds.

    Cons:

    • Smaller provider so fewer member perks and discounts compared to bigger funds.
    • Limited national presence may affect access to in-person support outside Tasmania.
    • Extras limits can be lower than some competitors.
    • Fewer add-on features than larger insurers with broader networks.

  • Bupa

    Bupa has a hospital cover member retention rate of 87%, showing consistent customer loyalty. It also provides 90.7% of general medical claims as no-gap services, helping members limit extra out-of-pocket costs.

    Why We Picked It

    Bupa is one of the largest health insurers in Australia, holding a 25.4% market share and a strong member retention rate of 87% on hospital-only policies. It covers 89.5% of private hospital charges, giving members broad access to hospitals and providers nationwide.

    When it comes to extras, Bupa offers a high proportion of no-gap services (50.1%), but lower-tier policies may exclude physiotherapy and optical treatments. Members also need to use a Members First Provider to receive higher benefits, which is becoming common across the industry.

    Bupa’s scale brings advantages like digital tools, member support, and its own dental and optical centres, which can help reduce out-of-pocket costs. However, it’s worth noting the insurer also received 18% of all complaints, slightly less than its overall market share.

    Pros & Cons

    Pros:

    • Wide range of hospital and extras cover options
    • Large provider network across Australia
    • Access to Bupa-owned dental and optical centres
    • Digital tools for claims and policy management
    • Discounts and offers for members on health-related services

    Cons:

    • Premiums can be higher than smaller insurers
    • Some extras limits may be lower than competitors
    • Not all services are covered at the highest benefit level
    • Policies may feel complex if you want simple coverage
    • Out-of-pocket costs can still apply, depending on the provider

  • GMHBA

    GMHBA records a hospital cover member retention rate of 80.7%, reflecting steady customer commitment. It also delivers 86.5% of general medical services as no-gap, helping members reduce out-of-pocket expenses.

    Why We Picked It

    GMHBA is recognized for its member-focused approach and excellent customer service, receiving positive feedback for support options such as live chat and phone assistance with callback services. It covers 89.3% of hospital claims and 46.6% of extras, while hospital membership retention has improved from 78.9% in 2024 to 80.7% in 2025.

    The fund offers hospital cover at multiple levels, along with extras such as dental, optical, and physiotherapy, making it easy to tailor a policy to your budget and needs. GMHBA members benefit from reciprocal agreements with other funds, granting them access to a broad hospital network across Australia, which lowers costs and enhances convenience.

    Beyond standard cover, GMHBA supports preventive health and wellness, including discounts on fitness and lifestyle services. Prioritizing overall wellbeing and offering flexible policy options make it a practical choice for those seeking more than just hospital and extras insurance.

    Pros & Cons

    Pros:

    • Not-for-profit structure focuses on members, not shareholders
    • Wide range of hospital and extras cover options
    • Access to a reciprocal hospital network across Australia
    • Preventive health programs and lifestyle discounts available
    • Long-standing reputation, especially in regional Victoria

    Cons:

    • Smaller market share compared to larger national insurers
    • Some policies may have higher premiums than competitors
    • Limited direct branch access outside Victoria
    • Extras benefits can have lower annual limits than bigger funds
    • Choice of hospital network may be narrower in some states

  • HCF

    HCF maintains a strong hospital cover member retention rate of 87.1%, showing consistent customer loyalty. It also covers 86% of general medical services as no-gap, helping members reduce unexpected costs.

    Why We Picked It

    HCF is Australia’s largest not-for-profit health fund, holding a 12.6% market share and returning 89% of member contributions back as benefits. It has a high hospital retention rate of 87.1% and covers 88.9% of private hospital charges, with extras coverage at 50.4%. Its policies range from basic to comprehensive, along with extras like dental, optical, and physiotherapy.

    Members can also benefit from HCF’s More for You program, which offers no-gap services for common treatments such as dental check-ups and eye tests when using participating providers. This structure helps reduce out-of-pocket costs and provides value for members.

    HCF is a not-for-profit fund that reinvests in member services instead of profits for shareholders, making it a great choice for better value. It also supports preventive health initiatives, including chronic condition management, mental health programs, and lifestyle discounts, making it more than just hospital and extras cover.

    Pros & Cons

    Pros:

    • Not-for-profit structure, profits reinvested into member benefits
    • Wide range of hospital and extras cover choices
    • More for You program with no-gap services on dental, optical, and more
    • Preventive health programs and chronic condition support
    • Large national network of providers

    Cons:

    • Premiums may be higher than some budget insurers
    • No-gap services limited to specific participating providers
    • Some extras cover limits may not meet heavy users’ needs
    • Fewer budget-only options compared to smaller funds

  • AIA

    AIA shows a hospital cover member retention rate of 68.3%, which is lower than many competitors. However, it offers 84.6% no-gap coverage for general medical services, helping reduce out-of-pocket expenses for members.

    Why We Picked It

    AIA is highly rated for customer value and service, with 88% of contributions returned to members and strong reviews averaging 4.8 stars. It offers hospital cover from basic to comprehensive, along with extras like dental, optical, and physiotherapy, so you can tailor policies to fit your needs and budget.

    What makes AIA unique is its AIA Vitality program, which rewards healthy lifestyle choices such as exercising and completing health checks. Members can access discounts on premiums, shopping vouchers, and other partner benefits, adding extra value to their cover.

    Digital convenience is another strength, with easy online and mobile app access for managing claims and tracking benefits. AIA offers appealing flexibility and rewards for health-conscious individuals, despite having lower hospital cover retention than some competitors.

    Pros & Cons

    Pros:

    • Access to AIA Vitality program with lifestyle rewards
    • Wide range of extras options for dental, optical, and allied health
    • Flexible hospital cover levels to suit different budgets
    • Discounts available for active participation in wellness program
    • Easy-to-use online tools and mobile app for managing claims

    Cons:

    • Rewards system may not suit you if you do not engage in regular health activities
    • Premiums can be higher than some competitors without reward discounts
    • Extras limits may not cover all costs if you use services often
    • Some benefits tied to partner programs, which may limit choice

Frequently Asked Questions

What factors should I consider when choosing a private health insurance provider?

When choosing health insurance, check whether the provider offers hospital, extras, or combined cover. Hospital cover typically includes services like surgery and rehabilitation, while extras may cover dental, optical, and physiotherapy. Be sure to compare waiting periods and policies side by side to find the best value for your needs.

What are the typical costs associated with private health insurance plans?

Health insurance costs vary by insurer and level of cover, with premiums ranging from basic to comprehensive protection. Lower-cost plans often cover only hospital services, while higher-priced options include both hospital and extras. Generally, the broader the coverage, the higher the premium.

Can you explain the differences between hospital cover and extras cover?

Hospital cover helps pay for treatment and accommodation if you’re admitted as a private patient, often including services like surgery, psychiatric care, and rehabilitation. Extras cover applies to out-of-hospital services such as dental, physiotherapy, and optical. Some insurers also offer combined cover, bundling both hospital and extras into one policy.

How do customer reviews and ratings influence the choice of health insurance?

Customer reviews can highlight how well a provider handles claims, billing, and support. Ratings often reflect the quality of service and the ease of using the policy. Reviews can help you compare health insurance providers and identify common issues, but they shouldn’t be your only source of information.

What are the benefits of having private health insurance versus relying on the public health system?

Private health insurance can reduce waiting times for elective surgery and give you more choice of hospital and doctor. It also provides access to services not always covered by the public system, like general dental or physiotherapy. You may also gain cover for private hospital rooms and certain treatments, which can make your healthcare experience more flexible and tailored to your needs.