How to choose health insurance in your senior years

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.  

On this page: 

• Do I need health insurance in my senior years? 

• How much does health insurance cost for seniors? 

• What type of health insurance should I get? 

• Incentives and penalties to know in your senior years 

• How do I choose health insurance in my senior years? 

Do I need health insurance in my senior years? 

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: 

• Skip long public hospital wait times with faster access to treatment in a private hospital, especially for common procedures like cataracts and joint replacements 

• Choose your own doctor and potentially your own room (if available) in a private hospital 

• Avoid paying the Medicare Levy Surcharge (MLS), if your income from salary, investments, pension and superannuation exceeds the threshold 

• Reduce out-of-pocket costs for dental, physio, audiology and osteo. 

How much does health insurance cost for seniors? 

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:  

Cheapest Hospital Cover  

• Basic – $204.20/month, $750 excess, ahm health insurance ambulance hospital (basic)
• Bronze – $255.86/month, $750 excess, see-u by HBF Saver Hospital $750 Excess with Daily Co-Pay (Bronze Plus) 
• Silver – $338.10/month, $750 excess, HBF Health Essential Silver Hospital $750/$1500 Excess
• Gold – $497.10/month, $750 excess, Mildura Health Fund Five Star Gold $750 Excess – F4

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:  

• Cheapest Extras Cover – $43.28/month, HBF Health Smart Start Extras, which covers  9 treatments including General Dental, Optical and Physio.
• Most Expensive Extras Cover – $408.20/month, Bupa Health Insurance Top Extras 90, which covers 25 of 27 treatments. 

How much does Combined Cover cost? 

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.
• Most Expensive Combined Cover – $1,012.04/month, $750 excess, AIA Health Insurance Silver Plus Family Hospital 750 and Best 70% Back Extras, which covers 37 of 38 Hospital Cover clinical categories and 25 of 27 Extras Cover treatments.

What type of health insurance should I get? 

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. 

• Hospital Cover – covers treatment as a private patient so you can get elective surgery faster and choose your own doctor. What health treatments are covered by Hospital Cover?  It also helps you avoid the Medicare Levy Surcharge if your combined income is over the threshold.   
• Extras Cover – helps cover the cost of a range of treatments that Medicare does not cover, such as dental, physio, optical and psychology. It doesn’t cover 100% of appointment costs and there are annual limits. What health treatments are covered by Extras Cover?  Remember that Extras Cover won’t help you avoid the Medicare Levy Surcharge.     
• 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.  

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.  

How do I choose health insurance in my senior years? 

Here are 4 simple steps:  

1. 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.  

2. 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.  

3. Compare policies   
   Use the free healthslips.com.au calculator to search every policy in Australia without commercial bias.   

4. 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.