Smart Ways to Cut Costs and Boost Your Private Health Insurance
Published October 3, 2025
The unfortunate fact of life is that health insurance premiums always increase annually, and this leaves millions of Australians in search of how to reduce costs while not compromising on health cover. But selecting the right private health insurance plan is more than looking for the cheapest coverage. You have to invest some time in ensuring you’re getting real bang for your buck.
Too many individuals unintentionally pay too much for health insurance or retain coverage that no longer suits their needs. The good news is that only a few intelligent changes can end up saving you hundreds if not thousands of dollars each and every year.
So here are 4 practical tips to begin 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 perhaps you just don’t believe there are any actual savings to be made. But going shopping and consulting a trusted health insurance broker is a simple way to locate a policy that suits your current requirements at a reduced cost.
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 at times deliver better coverage at lowest prices.
- Find out the hidden fees: Some policies come out cheaper, but when you read the fine print, you will be able to see sky-rocketing costs for common services.
- While switching consider waiting periods: If you are switching to a lower level of coverage, you don’t have to re-serve the waiting periods.
2. Don’t put all your eggs in a thin Basic plan
Although people buy Basic-tier private health insurance, but they do not think about whether or not their policy will end up giving them any genuine benefits. Unfortunately, such low-cover policies are likely to do little to help you if you require hospital care. Affordable hospital policies cover only ambulance services and a few limited hospital procedures. So, what is the wisest option? Instead of buying the cheapest policy possible, consider stepping up to a Bronze or even silver plan that delivers real value.
3. Modify your excess for lower premiums
Your excess is how much you pay when you claim on your hospital cover. Increasing your excess will result in lower monthly premiums. There are three standard excess options available (although some funds provide no-excess products) A policy with an excess of $750 will save you hundreds a year compared to one with an excess of $250. As most people hardly ever need to be admitted as inpatients, opting for a higher excess may be good value for money.
4. Make use of rebates and discounts
If you didn’t already know, there’s a private health insurance rebate to offset the premiums you pay. The issue is that many Australians aren’t benefitting from this advantage or aren’t familiar with discounts provided by rival insurers. These are some of the simplest methods to make your savings:
- Verify your rebate entitlement: For below-65s, if your income is less than $101,000 (single) or $202,000 (family/couple), you can receive a rebate of up to 24.288% (from 1 April 2025).
- Pay your premiums upfront annually: Certain insurers offer a discount if you pay in advance. Paying before 1 April will also spare you the shock of the next premium increase.
- Use direct debit: Some funds might be able to tempt you with small monthly discounts for automatic payments.
Ready to get more bang for your buck with private health insurance? The experts at Utility Market are here to help you compare health insurance plans and find the right fit for your situation and your budget.
