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How to choose health insurance in your senior years
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Whether you’re enjoying good health or facing hospital treatment, there are many reasons to consider health insurance in your senior years:
access private hospital treatment for surgery
reduce the costs of non-hospital health appointments
avoid extra tax.
Whatever your motivation for considering health insurance in the second half of your life, we’re here to help you understand policy options, costs and government penalties.
Public hospital care is free under Medicare, so having private health insurance isn’t essential. But in your senior years, your likelihood of hospitalisation goes up, so many people choose Hospital Cover for faster access to non-urgent surgery.
People get health insurance in their senior years for a range of reasons including:
Delia, 61, is considering getting a policy so she can get treated in a private hospital faster if she needs to in the future. Her sister waited several months for cataract surgery and Delia wants to make sure she doesn’t have to wait that long if she develops health problems. She buys a Gold tier Hospital Cover that covers everything including ambulance treatment, but decides Extras Cover doesn’t make sense for her health needs. Because she hasn’t had Hospital Cover before, she must pay an extra 62% Lifetime Health Cover on top of her premium.
The cost of health insurance depend on what treatments and services are covered, not your age.
There are 4 Hospital Cover tiers: Basic, Bronze, Silver and Gold, as well as ‘Plus’ policies (in Basic, Bronze and Silver) which provide more cover at each level.
For a couple in their 70s living in Victoria, here are some price comparisons as at April 2026:
Your medical history and age won’t affect your premiums. However if you haven’t maintained Hospital Cover since your 20s, you’ll pay a government penalty called the Lifetime Health Cover Loading which will increase your premium.
How much does Extras Cover cost?
Extras Cover is for non-hospital healthcare services not covered by Medicare, including dental, physio and optical. For a couple in their 70s living in Victoria, as at April 2026:
Combined Cover is Hospital and Extras cover in one package. It doesn’t make cover cheaper than buying each policy separately, but it means only one payment. For a couple in their 70s living in Victoria, here are some price comparisons for Silver tier cover, as at April 2026:
Cheapest Combined Cover – $376.60/month, $750 excess, Frank Health Insurance Silver Hospital & Bundables $250, which covers 29 of 38 Hospital Cover clinical categories and 13 of 27 Extras Cover treatments, including General Dental, Optical and Physio.
You can buy health insurance for just yourself (a Single policy), or if you’re living with a partner, you might choose a Couples policy. The type of cover depends on what health treatments you want covered.
Combined Cover – includes Hospital Cover and Extras Cover. It won’t necessarily save you money to buy 2 policies this way.
Ambulance Cover – Medicare doesn’t cover ambulance treatment, so Ambulance Cover can help you avoid the cost for ambulance treatment. You may not need Ambulance Only Cover if you have other health insurance as it’s often included. (Note: if you live in Queensland or Tasmania, ambulance costs are paid for by your state government.)
Compare all cover types and the cost of including a partner and children in your policy using the healthslips.com.au calculator. It’s fast, easy and free.
Robert, wants knee replacement cover
Robert, 76, has been living with knee osteoarthritis for years and has been told he may need a knee replacement later down the track. He knows public hospital wait lists are long, so he checks his Bronze tier Hospital Cover policy, but finds that knee replacements are not covered. He uses the healthslips.com.au calculator and finds a Silver Plus tier policy that covers joint replacements. He upgrades to the new policy, and although he will have a 12-month waiting list before he can claim for knee replacements, the doctor tells him he is unlikely to need surgery in that period.
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Incentives and penalties to know in your senior years
How much you pay for health insurance is affected by government incentives and penalties:
Private Health Insurance Rebate – reduces premiums if you earn below the income thresholds. If you’re aged over 65, your rebate could be more.
Lifetime Health Cover Loading – adds 2% to Hospital Cover premiums for every year you’re over 30 when you first take out cover, up to a maximum of 70%. This is removed after 10 years of continuous cover.
Don’t forget about the Medicare Levy Surcharge (MLS). It doesn’t affect premiums but does mean an extra 1-1.15% tax if you earn over the threshold and don’t have Hospital Cover for the full financial year.
Maria and Benjamin are a couple in their 70s. They had health insurance when their children were young but cancelled their policy many years ago to save money. They are worried about their health needs in the future so they are considering getting a new policy. Because they cancelled their previous policy, they will need to pay Lifetime Health Cover Loading – which will add 70% to their Couples policy. Because of this cost they decide not to get cover and rely on the public health system instead.
Image credit: Shutterstock
How do I choose health insurance in my senior years?
Here are 4 simple steps:
Choose your cover type Choose Hospital Cover, Extras Cover or both, based on your health needs and budget. If you want access to private hospital treatment, you’ll need Hospital Cover. If you want cover for non-hospital treatments like dental and physio, you’ll need Extras Cover. Check that ambulance cover is included, or buy an Ambulance-Only Cover policy if that’s important to you.
Choose your treatments If you have a health condition, or a family predisposition to a particular illness, look for a policy that meets your health needs.
Compare policies With the free healthslips.com.au calculator, you can search every policy in Australia without commercial bias, and we guarantee you the cheapest policy.
Buy your policy Before you buy, check waiting periods, excess and any incentives or penalties. You’ll be covered once you’ve paid your first premium, but will face waiting periods before you can claim.
Cathy, wants Extras Cover
Cathy, 82, has had Hospital Cover for many years but is considering Extras Cover to help with her costs for audiology, dental, optical, physio and podiatry appointments. She uses the healthslips.com.au calculator and finds a Combined Hospital and Extras Cover policy that involves the same level of Hospital Cover as her existing policy for a lower price, plus a mid-level Extras Cover policy to reduce her non-hospital health appointments. She works out that she would claim enough back each year to make the Extras Cover policy financially viable.
