Four-tier system driving up the cost of Gold cover, actuary says

Health insurance regulations mean top-level cover has increasingly become unaffordable for many Australians. 

That’s the finding in an Actuaries Digital article, which suggests that the 4 tiers – Basic, Bronze, Silver and Gold – should be restructured. 

The number of Australians with Gold tier policies has dropped from 95% in 2005 to just 30% in 2026, due to younger claimers being concentrated on expensive Gold policies. This means many people do not have access to services such as private maternity cover, assisted reproductive services and mental health hospitalisation.  

The article proposes a simpler system with just 2 levels of cover – Basic and Gold – to make full health insurance more affordable and ensure people are not charged more because they are more likely to need treatment. 

Read the full Actuaries Digital article, with contributing data from healthslips.com.au.  

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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