Effective Ways to Reduce Costs and Get More from Your Private Health Insurance
Published November 17, 2025
It is a sad fact of life that health insurance premiums go up every year, leaving millions of Aussies looking for ways to reduce costs on private health insurance without compromising on health cover. But choosing the right private health insurance is not about finding the cheapest coverage. A little time may be invested in ensuring you are getting value for money.
Too many people unintentionally shell out too much for health insurance or retain coverage that no longer suits their needs. The good news is that it only takes a few intelligent changes to save you hundreds, if not thousands, of dollars each and every year.
So, here are 4 practical tips to follow reducing your health insurance expenses while still enjoying the cover you deserve.
1. Compare online with a broker for the best offer
It’s tempting to just kick back and keep the same health insurance company for years and years. Perhaps you’re afraid of changing since it will be too complicated, or maybe you just don’t think there are any real savings to be had. But doing some shopping and speaking to a leading health insurance broker is an easy way to find a policy that will meet your current needs but at a lower price.
A good comparison of website and reputed broker can help in finding you lower cost policies that offer you with the same or supreme cover as your current plan. As health insurance premiums are based on the service provider and the insurers constantly increase their costs as per the competition and what is happening in the market, using a broker for comparison simplifies it all.
When looking around for the best plan, this is what you do:
- Look beyond big brands: Smaller, non- profit health funds can deliver better coverage at lowest prices.
- Find the hidden fees: Some of the policies come out cheaper, but when you read the fine print, you will see that the costs for common services are sky-rocketing.
- While switching consider waiting periods: You don’t have to re-serve the waiting periods if you are switching to a lower level of coverage.
2. Don’t put all your eggs in a thin Basic plan
While they buy Basic-tier private health insurance, people do not think about their policy being able to provide them with any genuine benefits. Unfortunately, such low-cover policies are likely to do little to help you in the event of you needing to go to hospital. Affordable hospital policies barely cover ambulance services and a few limited hospital procedures. What does wisdom suggest? Take up a Bronze or even silver plan that delivers real value rather than an inexpensive one.
3. Adjust your excess to lower your premiums
Your excess is the amount you pay, in addition to your premium, when you make a claim on your hospital cover. Your premium will be lower each month if you increase your excess. There are three ‘standard’ excess options, although some funds offer no-excess products. A policy with a $750 excess will save you hundreds a year compared to a $250 excess. For most people, who rarely or never need to go to hospital as an inpatient, this can be good value.
4. Take advantage of rebates and discounts
If you hadn’t known by now, there’s an insurance rebate available to subsidize the premiums you pay. The problem is that plenty of Australians aren’t benefiting from this advantage or aren’t aware of discounts that are on offer by competing insurers. These are some of the easiest ways to make your savings:
- Confirm your rebate eligibility: If you are below 65 and your income is less than $101,000 for singles or $202,000 for families/couples, you will get a rebate of up to 24.288% from 1 April 2025.
- Pay your premiums up-front annually: Some insurers give you a discount if you pay in advance. You will also avoid the shock of the next premium increase if you pay before 1 April.
- Use direct debit: Some funds might be able to tempt you with small monthly discounts for automatic payments.
Ready to get more for your money from your health insurance? Utility Market experts can help you compare health insurance plans to find the best policy, both in terms of your situation and within your budget.
Reduce costs on private health insurance and get the latest policy insights: Follow Utility Market on LinkedIn.
