Health Insurance for Young Adults

There’s no one-size-fits-all policy or even one that fits most! As a young adult, you’ll need to get used to making plenty of decisions on your own, and your health insurance is a good place to start.

Depending on your needs, budget, and concerns, you may want to only purchase a lower-level hospital policy. A bronze hospital policy can give you the benefits of being a private patient, like maybe a private room and a shorter wait, along with cover for a number of different procedures.

Additionally, having even a basic hospital policy could mean you don’t need to pay extra tax via the MLS. Just be aware that if you pick a singles policy, you’ll need a $750 excess or less. A $1,500 excess is the maximum for a couples policy.

Alternatively, you might be happy to be a public hospital patient and risk the MLS but want more of what Medicare doesn’t cover. Think services like dental, physio, and optical. For that you’ll just need an extras-only policy.

Or you could always go for both hospital and extras cover. That’s what 73% of online iSelect customers who told us they were coming off of their parents’ cover were looking for in 2023.

You may like to think about what your needs are now and if they might change sooner rather than later. This can include if the policy is only going to cover you, or both yourself and your partner, or even your family if you have kids of your own. Factoring in what you can comfortably afford too could be a good idea.

Penalties like the MLS or LHC loading may also come into the equation. Opting to purchase appropriate hospital cover may mean you’re not paying as much on your tax or your premium, while also getting to enjoy the benefits of having health insurance.

Health insurance policies can also come with perks and incentives that suit your lifestyle. This could be cheap movie tickets, discounts from big-name brands, or other little treats that can make life a bit sweeter.

If you need some help deciding between policies, you could always use a health insurance comparison service, like iSelect. This could make things a little easier when you’re trying to narrow in on a value-packed policy.

If you’re hoping to avoid the LHC loading, as well as grab an age-based discount, you may want to get health insurance sooner rather than later (and particularly before your 30th birthday).

Even if you’re still covered as a dependent on your parents’ policy, it might not hurt to start setting up your own coverage. This could then mean you have a smooth transition from being covered by their policy to enjoying your own.

If you have a partner or a family, opting for a shared policy could help streamline your health insurance. You could then share the same benefits and pay just one premium.

You may want to be aware that this doesn’t necessarily work out as being cheaper than two singles policies though.

Additionally, your age-based discount can be affected. It’ll be averaged out between the two adults on the policy. So, if you were proactive and got health insurance early, scoring that 10% discount, but your partner only has a 2% one, you’ll end up sharing a 6% discount.

Speaking of your discount, remember to double-check if your age-based discount will follow you on to your new couples or family policy. Insurers don’t have to honour it.

Waiting periods are the time between when your policy starts and when you can start claiming on it.

For hospital cover, if you haven’t had it before (or for a while) or you’re upgrading your cover, you may need to wait 12 months to have your pre-existing conditions covered, along with pregnancy services. Other services – including some for pre-existing conditions – can only have a max waiting period of two months.

Insurers can set any length of time on extras cover. It’s not unheard of to need to wait between two and six months for general dental and physio, and a year or more for bigger items like orthodontics.

So, what if you were covered on your family’s policy and are now looking for your own? Well, it can depend on the insurer and the policy you pick. If you choose one that keeps you with the same insurer as your parents – and do so quickly enough after coming off your parents’ cover – you may not need to serve any waiting periods. Having a gap between your cover and picking a new insurer could mean that you’re treated as a new member, and then need to get through those waiting periods.

Even if you have a pre-existing condition, you can still get health insurance. Insurers can’t mark up the price or stop you from buying or renewing a policy.

What you may want to be aware of, though, is how pre-existing conditions can affect waiting periods. For hospital cover, you may need to wait up to 12 months to claim benefits related to your pre-existing condition. That is, unless it’s for psychiatric treatments, rehabilitation, and palliative care; then it’s only two months.

If you’re after extras cover, your insurer can set a longer waiting period if they like. So, when you’re looking at extras policies, you may want to see how different waiting periods measure up.

Thankfully, it’s pretty easy to claim on your health insurance.

You’ll usually find that you can claim directly at the service provider, using HICAPS. You’ll just need to swipe your health insurance card in the machine, and your claim should be processed.

Alternatively, you can get in touch with your insurer online, over the phone, or using a dedicated app. You’ll need to have your paid invoice ready to show them.