Health Cover for Millennials and Gen Z: What You Need to Know

Published June 12, 2026

Taking out health insurance before you turn 30 can help you lock in lower premiums and ensure you’re covered when you need it. If you are less than 30 years old, there are many reasons why you should get private health insurance.  Whether it is your first insurance, you are moving out from your parents’ insurance plan or you simply do not wish to pay higher premiums in the future, getting private health insurance early can help you gain easy access to the treatment you need and save money in the long term.

Health insurance scenarios for those under 30

There are many instances when private health insurance for those under 30 can be useful:

Getting your first insurance policy: If you do not have any health insurance at all, then it would be good to take one up to protect yourself from any unexpected medical expenses that might occur.Basic hospital or extras cover would suffice to keep the expenses under control.

Moving off the parent’s policy: There are a lot of people who get insurance under their parent’s policy, but while the policy allows them to stay on the policy until they are 31 years old, sometimes there are private funds that cut off the coverage even earlier, at the age of 25. It is very important to check how long you will be able to stay on the policy and organize a new cover in order not to leave any gaps because the absence of health care can be really expensive.

Avoiding Lifetime Health Cover (LHC) loading: The Lifetime Health Cover (LHC) loading is a government initiative designed to penalize individuals who do not buy hospital cover until they reach 31 years of age. The loading is increased by 2% for each year after 31 years when you bought your first hospital cover, up to 70%, and lasts for 10 years from that moment.

Being above the Medicare levy surcharge threshold: depending on your earnings, if you earn more than a certain amount, e.g., above $101,000 for singles in 2025–26, you will be required to pay additional taxes through the Medicare levy surcharge (MLS). However, this problem can be solved by purchasing private hospital cover at an adequate level.

How Health Insurance Works

Although health insurance is not mandatory in Australia, purchasing this type of insurance might help you to cover additional costs that are not part of Medicare, and you will get extra flexibility concerning the way your treatment is done. You will be able to select your treating practitioner and visit private facilities.

There are two principal types of cover:

Hospital cover: this insurance assists you with the cost of your hospitalization as a private patient. The level of insurance is divided into four categories (Basic, Bronze, Silver, and Gold), each of which determines what kinds of services will be paid for.

Extras cover: this assistance will assist you with out-of-hospital treatment, such as physiotherapy, visits to dentists, opticians, etc. Extras cover includes different services; however, the majority of the policies will pay for check-ups, standard medical procedures, whereas higher-level insurance may cover major treatments.

Hospital cover and extras can be purchased separately from each other or in one combined policy, but without hospital cover, it will be impossible to escape the LHC loading and the MLS because only hospital cover gives access to discounts. Obtaining hospital cover while young will allow you to benefit from the private health insurance discount and lower premiums. 

Youth discount: why you save money by obtaining cover before 30 years old

If you obtain private hospital cover before 30 years old, you may be eligible for an age discount of your premiums. Such discount is calculated according to the age of the insured when he obtains cover and can provide up to 10% of reduction.

The earlier you get cover, the higher discount you will have. Below there are discount rates per age group:

Disclaimer: The prices shown above are indicative only and are provided as a general guide. Actual private health insurance premiums may vary depending on your location, insurer, level of cover, government incentives, age-based discounts and personal circumstances. Check with the provider for current pricing and policy details before making a decision.

E.g., in case if your age is 27 years old at the time of obtaining hospital cover, you will pay only 6% less than people who postpone obtaining hospital cover until their 30s (in three years under 30 with 2% discount per year).

Such discount stays valid till 41, after that it will decrease with 2% per year.

Cost of health insurance for those under 30 years old

The cost of health insurance will depend on the chosen health insurance type, your income, where you live, the insurance provider, and whether they provide age discounts.

For those who are just getting covered, here are the most affordable policies that can be purchased for each age up to 30, from Savvy as of April 2026:

Medicare Levy Surcharge and how it affects those under 30 years old

Provided that your income exceeds the specified amount, you may avoid having to pay the MLS by taking out a hospital cover, for which the most basic policy will suffice and will prove to be even more affordable.

However, even though the most basic hospital plan is sufficient for avoiding the MLS, such a plan comes with limited health cover. If you would like to have more inclusions and benefits, you should take out a higher plan.

Before choosing your policy, compare your options carefully and discover how the right Health Cover for Millennials can help you save and stay protected with Utility Market and follow us on Facebook for the latest updates, tips and savings insights.

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