Are not-for-profit health insurers cheaper? 

Of the 48 insurers selling health insurance in Australia right now, 22 of them are not-for-profit, which means they aren’t focused on making and returning a profit to shareholders. So, does that mean policies from these insurers are cheaper? Here, we explore whether you’ll save money on health insurance by buying a policy from a not-for-profit health insurer.  

Why are some insurers not-for-profit? 

Not-for-profit health insurers aim to pay benefits to members, setting aside money for future claims rather than returning a profit to shareholders. Some not-for-profit insurers exist to serve a particular community or industry, including Restricted insurers, that are only open to people in certain professions (think: healthcare, military and emergency services). According to Members Health Fund Alliance, which represents many not-for-profit or member-owned insurers, these types of insurers tend to have higher levels of customer satisfaction and provide better value.   

Are not-for-profit health insurers cheaper? 

Not necessarily. Sometimes larger for-profit insurers can be more competitive with pricing, and might offer better deals for Extras treatments like optical and dental through their networks. On the other hand, some not-for-profit health insurers are able to offer lower premiums and give you more back on claims. Plus, according to Department of Health data, for-profit insurers raised their premiums by a higher average percentage in 2025 than not-for-profit insurers. 

So when you’re looking for cover, it’s better to look for best policy and premium for your needs rather than focusing on the insurer’s management structure. 

To find the best health cover for you, search across both for-profit and not-for-profit insurers quickly using the healthslips.com.au calculator. It searches every insurer and every policy in Australia with no commercial bias, so you know you can trust the results. Search for a new policy today, or compare your current policy to other similar policies – for free, and without entering any contact details.  

What’s the best health insurer in Australia?

healthslips.com.au does not provide general or personalised advice. Your particular circumstances are likely to impact the accuracy, completeness and relevance of the information or results. Take this into account before making a decision and talk to an expert for financial advice. 

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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