.svg)
Health Insurance for Seniors
Health Insurance for Seniors
Written by
Madeline Pettet
Edited by
Ellie Garran
Reviewed by
Andres GutierrezCheck out our range of private health funds
iSelect does not compare all providers in the market or all policies offered by our partners in your area. Not all policies or special offers are available to all customers and some may only be available over the phone or on the website. Learn more.
What is health insurance for seniors?
Your private health insurance premiums don’t change based on how old you are. That means there’s no specific health insurance policy that’s only for seniors. But some types of health insurance may be more appealing when you’re getting older.
And while you’re only as old as you feel, when we talk about health insurance for seniors, we’re generally referring to people aged 67 and older. This is the magic number the Australian Government uses for the pension age and some related healthcare benefits.
Medicare, along with your Pensioner Concession Card or Commonwealth Seniors Health Card, could cover some common health conditions experienced by many older Australians. However, health insurance could help you treat the big and small changes in your health as you set a new personal best for birthdays celebrated.
Is health insurance worth it for seniors?
As you get older, it’s natural to start planning ahead – thinking about things like looking after your family down the track. Some Aussies may already have considered life insurance (and even funeral insurance, without getting too heavy about it!) to make sure loved ones are taken care of and any unexpected costs can be covered.
On the health front, Aussies in their golden years can be more at risk for a range of health conditions, like heart conditions, strokes, and different types of cancer. Getting older can also mean dealing with changes to vision and hearing.
Private health insurance can help you manage not just the big changes but the everyday stuff too – everything from new glasses to physio and chiropractic support. You might find that having health insurance can help you focus on enjoying the years ahead and spending more quality time with your family (yes, especially the grandkids).
What are the key benefits of health insurance for seniors?
Skip the risk of long public waiting times
When it comes to elective surgery, waiting periods can be long in the public system. For instance, in 2023–24, the median wait for a total knee replacement through the public system in Australia was 265 days, with a quarter of patients waiting over a year for their surgery.1Australian Institute for Health and Welfare – Waiting times for elective surgery
Unfortunately, elective surgery becomes more commonplace the older Australians get, peaking around our 60s and 70s.2Australian Institute for Health and Welfare – Admitted patient care 2023–24: What procedures were performed?
But private health insurance can mean seniors have a better chance at a shorter wait for elective surgery. Depending on your policy’s coverage, you might be able to schedule in treatment sooner. Taking control of your treatment this way could help improve your quality of life.
Pick a doctor you trust
In the public system, you’re not able to pick your hospital or doctor. This could add to your worries when you need to visit the hospital. However, health insurance could help here.
Depending on your policy, you may be able to pick your treating doctor for in-hospital procedures. For instance, you might like to go with a doctor you’ve seen before, or one recommended by friends and family. However you play it, the end result can be that you feel more comfortable going into your procedure.
Just keep in mind that not all doctors practice at all hospitals. Health insurers also have agreements with different doctors. So, it might be worthwhile to check ahead of time where your preferred doctor works and which health insurers they have an agreement with.
Recover in a private room
Forget about being kept awake by someone snoring as you rest after your surgery. With private health insurance, you can request your own room in hospital.
A space for yourself can be the next best thing to recovering at home. Not to mention, it can be a little more comfortable to have friends and family visit without the extra audience.
Remember, private rooms are limited, so it’s not a guarantee every time.
Get money back on your cover, if eligible
If you earn under a certain amount, you might be eligible for the Australian Government’s private health insurance rebate. As well as your income, it takes your age into account, with those 65 and older able to claim a higher rebate rate than younger folk in the same rebate tier.
Most Australians with private health insurance are able to claim the rebate. That includes plenty of older Aussies. In 2024, 93% of iSelect customers aged 67 and older claimed the rebate.3Based on iSelect health insurance comparisons, January – December 2024
You can claim it either as a premium reduction through your insurer, so you pay less up-front, or as a tax offset when you lodge at tax time.
And speaking of tax, having hospital cover also avoids the risk of copping the Medicare Levy Surcharge – an extra tax that’s meant to encourage people to hold health insurance. While it isn’t exactly getting money back, having an appropriate level of private hospital cover is a way to avoid extra payments to the tax man.
(We’re not the ATO, so it’s a good idea to consult your accountant on the tax stuff.)
Private health insurance rebate and Medicare Levy Surcharge rates
| 2025–2026 income thresholds | ||||
| Base tier | Tier 1 | Tier 2 | Tier 3 | |
| Singles | ≤$101,000 | $101,001–$118,000 | $118,001–$158,000 | ≥$158,001 |
| Couples and families | ≤$202,000 (combined) | $202,001–$236,000 (combined) | $236,001–$316,000 (combined) | ≥$316,001 (combined) |
| Rebate percentage (as of 1 July 2025 to 31 March 2026) | ||||
| Age <65 | 24.288% | 16.192% | 8.095% | 0% |
| Age 65–69 | 28.337% | 20.240% | 12.143% | 0% |
| Age 70+ | 32.385% | 24.288% | 16.192% | 0% |
| Medicare Levy Surcharge (1 July 2025 to 30 June 2026) | ||||
| Surcharge | 0% | 1% | 1.25% | 1.5% |
Source: PrivateHealth.gov.au – Australian Government Private Health Insurance Rebate; Medicare Levy Surcharge
Why buy with iSelect?
Our service costs you nothing and comes with no obligation to purchase. Instead of charging you a fee, our partner funds pay us a commission. Learn more about how we make money
We don’t mark up the price of our policies, so you’ll pay the same as buying direct from the Health Fund.*
*Excluding corporate discounts and exclusive retail offers
If we can’t find you a better deal, we’ll be honest about it and tell you to stay exactly where you are
Our comparison experts are based in Australia, like you. When it comes to navigating the complexities of the Aussie health system, they know what’s what
While our service is provided to you completely free of charge, we know there is no such thing as a free lunch.
How to buy with iSelect
Get acquainted
Share some basic details about yourself or your household and the type of health insurance product you’re looking for
Learn your options
Compare our range of funds and policies, and filter your options based on what’s important to you
Get sorted
Once you’re happy with your choice, we’ll help you finalise and buy, either online or over the phone
Done!
We’ll let the health fund in charge of your old cover know that you’re saying goodbye to their policy.
Found the same policy cheaper?
We’ll give you a $500 Gift Card
When it comes to Health Insurance, we make a Price Promise to you: if, within 30 days after buying with us, you find the same policy with a lower standard annual premium from the same insurer, we’ll give you a $500 eGift card.
What types of health insurance policies for seniors are available?
Young singles, families, and people heading into retirement all have different health and lifestyle needs. That’s why it’s important to consider what type of cover you want now and in the future.
Helpful tip
Some extras policies include home care benefits, covering services not typically part of hospital policies, such as wound care and administering medication. These benefits are often found in more comprehensive extras policies, though the exact inclusions can vary. Give your policy of choice careful consideration and decide which benefits matter most to you.
Dr. Jill Gamberg
GP, Coach, and Lifestyle Medicine Physician
How much is health insurance for seniors in Australia?
Everyone’s health needs are different, and so are their private health insurance policy preferences. Some people may want as much covered as possible, while others might only have a few key concerns. It’s a bit of a Goldilocks and the Three Bears situation (but with less breaking and entering). What a policy covers can really change a premium, along with who’s offering the policy.
Obviously, this all makes nailing down a dollar figure that much harder – but we can offer some averages to help you get a clearer picture. The table shows the average national monthly health insurance premium iSelect customers aged 67 or older paid in 2024–25.
Remember, policies that cover more, like gold tier hospital policies, tend to be more expensive. Aussies who opted for less cover, like just a simple extras policy, probably paid less than these averages. Meanwhile, someone who had a gold hospital policy and extensive extras cover likely paid more.
| Age | National monthly average premium |
| 67–72 | $360.58 |
| 73–78 | $367.92 |
| 79–84 | $355.92 |
| 84 and older | $332.17 |
Source: Based on iSelect health insurance comparisons, July 2024 – June 2025
Note: Figures include hospital cover, extras cover, and combined cover.
Frequently asked questions
If I have health insurance for seniors, do I still have to pay the Medicare Levy Surcharge (MLS)?
The Medicare Levy Surcharge – or MLS to its friends – doesn’t see age. All it cares about is whether or not you have hospital cover, and what your taxable income for MLS purposes is.
In a nutshell, if you have appropriate private hospital cover, you probably you won’t need to worry about the MLS. In this case, appropriate hospital cover works means cover with an excess of $750 or less for singles and $1,500 or less for couples and families.
If you don’t tick the box for ‘an appropriate level of hospital cover,’ you could still be in the clear for the MLS, assuming your taxable income falls under the threshold. If you do earn over the threshold, your surcharge could be as much as 1.5% of your taxable income for MLS purposes.
How does Lifetime Health Cover (LHC) loading affect health insurance for seniors?
Lifetime Health Cover (LHC) loading dates back to 1 July 2000. It’s an initiative to encourage Australians to take out and maintain hospital cover.
If you don’t have hospital cover by the time your Lifetime Health Cover base day rolls around, you’ll pay a 2% loading on your premiums for every year you’re aged over 30 when you do take out cover. A couple of percent here and there doesn’t sound that bad until you realise it maxes out at an eye-watering 70% loading. That loading also sticks around for 10 years. Ouch.
While it’s often talked about as a consideration for young people and private health insurance, it’s only the very elderly who can ignore it. In fact, if you were born any time after 1 July 1934, LHC loading can apply to you.
The difference between you and younger Australians is how your Lifetime Health Cover base day is calculated. If your 31st birthday was on or before 1 July 2000, 1 July 2000 will be your base day.
Does health insurance for seniors cover pre-existing conditions?
Health funds have mandatory waiting periods for hospital cover. For pre-existing conditions, it’s 12 months.
As for extras cover, how long you’ll need to wait may vary across different insurers.
The good news is, if you’re switching from one health fund to another and have already served your 12 months for hospital cover, you won’t need to serve them again. Health funds allow you to switch without re-serving waiting periods, as they should.
It’s always worth checking the relevant product disclosure statement or private health information statement for the specifics on waiting periods.
Do seniors get a discount on private health insurance in Australia?
As far as discounts go, the private health insurance rebate is likely to be one of the heftiest that seniors can enjoy. And lots do! In fact, 93% of iSelect customers aged 67 or older claimed it in 2024.4Based on iSelect health insurance comparisons, January–December 2024
Of course, whether you’re eligible depends on whether your income comes under the threshold. As of 1 July 2025, the income threshold is $158,000 for singles and $316,000 for couples and families.
If you qualify for the aged pension, you’ll likely fall into the base tier and receive a higher rebate percentage.
Compare health insurance policies the easy way
Save time and effort by comparing a range of Australia’s health funds with iSelect
Health Insurance & Tax
Tax Implications on Health Insurance
How to save on Health Insurance
About the Medicare Levy Surcharge
About the Life Time Health Cover Loading
Government Rebate & Means Testing
iSelect does not compare all health insurance providers or policies in the market. The availability of policies will change from time to time. Not all policies available from its providers are compared by iSelect and due to commercial arrangements, your stated needs and circumstances, not all policies compared by iSelect are available to all customers. Some policies and special offers are available only from iSelect’s contact centre or website. Click here to view iSelect’s range of providers