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Health insurance saves the government $1,434 per person

By Stephen Treacey Reviewed and updated 17 March 2024

Every Australian who takes out health insurance saves the government around $1,434 a year, a recent report has found. 

Analysis from the University of Newcastle, on behalf of the Department of Health and Aged Care, investigated the impact of private health insurance on the public healthcare system. It found the government saves an average of $1,434 per person with health cover, with savings reaching around $4,000 when the insured person is aged 75 and above. 

The study also weighed up the savings the government makes versus the amount it spends to subsidise health insurance through rebates and surcharges. It found the government saves $554 for every insured person it helps with subsidies.

In a report published on The Conversation, the study’s authors suggest that people with greater healthcare needs be given ‘risk-adjusted subsidies’ to better subsidise private health insurance in Australia. 

Read the full story from The Conversation.

Stephen Treacey
CEO and Founder

Stephen is passionate about research and accuracy, factors evident in the quality of information on and

Stephen holds a Bachelor of Commerce in Accounting, Finance and Systems from the University of New South Wales.

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