How one can get a reduction in your medical insurance


Have to know

  • You could qualify for a reduction of as much as 12% in your private medical insurance and never learn about it
  • Cheaper premiums can be found for people under 30 and people over 65
  • Many health funds offer you a reduction in case you prepay or pay by direct debit

A variety of health funds in Australia offer discounts and you would easily qualify for one without knowing it. With private medical insurance laws allowing funds to present discounts of as much as 12% off the price of your premium, listed below are a number of the ways you’ll be able to access cheaper health cover.

  • Employers, super funds, associations, clubs and mutual banks can provide corporate discounts.
  • Many health funds offer you a reduction in your medical insurance in case you pay by direct debit or prepay your annual premium. 
  • Australians under 30 qualify for a youth discount as much as 10% from many health funds, while older Australians 65 and over get the next medical insurance rebate.

Although discounts may also help with the price of canopy, it’s still idea to buy around for a greater deal – you would possibly find an acceptable policy that is cheaper from a fund that does not give discounts. 

Since sifting through 1000’s of policies is not anyone’s idea of time, our experts built a tool to assist you to compare medical insurance and make sense of your options (with no sponsored ends in sight).

Corporate medical insurance discounts

Some jobs include free medical insurance while some employers may pay a part of your medical insurance, corresponding to your hospital policy, and ask you to fork out to your extras cover. But in case your job doesn’t include these perks, it’s possible you’ll still qualify for a company discount from a health fund. 

Corporate discounts could also be available through…

  • Your employer: Many firms have arranged discounts for his or her staff with health funds. Ask your employer whether or not they offer this.
  • Your super fund: Numerous super funds have arrangements with health insurers.
  • Associations and clubs: Some clubs offer medical insurance discounts to their members.
  • Your mutual bank: Some credit unions and mutual banks have negotiated a reduction for his or her shareholders or customers.

Bupa and Medibank corporate discounts

Bupa and Medibank each offer discounts to eligible employees of a whole lot of various businesses, they usually each have a chosen website where you’ll be able to check the name of your employer to search out out whether you’ll be able to get a reduction:

Each funds even have promotions every so often free of charge cover for the primary few weeks of corporate cover. 

For Medibank, various discounts apply to eligible employees of:

man talking with employer about insurance

  • Accor Hotels – 7%
  • ANZ – 7%
  • BHP –9%
  • Coles – 9%
  • Commonwealth Bank – 5%
  • Hilton Hotels – 7%
  • NAB – 7%
  • NSW government departments – 7%
  • Telstra – 11%
  • University of Melbourne – 7%
  • Wesfarmers Ltd – 9%
  • Woolworths Ltd – 5%.

Bupa doesn’t publish the quantity of discount you get, however it generally ranges between 4% and eight% for eligible employees of:

  • Accor Hotels
  • ANZ
  • BHP National
  • Coles
  • David Jones
  • Department of Social Services
  • Hilton Hotels
  • South Australian Government
  • Wesfarmers Federation Ins Ltd
  • Westpac group
  • Woolworths supermarkets
  • University of Queensland.

But make sure check the discount web sites for every fund for a full list of employers.

Some super funds can also give medical insurance discounts to their members, and these include Care Super (GMHBA, HCF and NIB) and Telstra Super (HCF).

Medical health insurance discounts through associations and clubs

Some skilled associations, membership organisations and clubs like motoring clubs have arranged discounts from health funds for his or her members, corresponding to:

  • Australian Dental Association WA – HIF
  • Australian Nursing Federation – HIF
  • NRMA – Australian Unity
  • Police Association of NSW – Bupa
  • National Seniors – Australian Unity
  • RAC WA – HCF ($400 money back, no ongoing discount)
  • RACQ – AIA ($400 gift card, no ongoing discount).

Medical health insurance discounts through mutual banks

Some mutual banks and credit unions offer medical insurance advantages to their members, corresponding to:

  • Bank First – Australian Unity
  • Community First Credit Union – Peoplecare (no ongoing discount, one month free cover)
  • Credit Union SA – Health Partners
  • MyState Bank – St.LukesHealth.

Restricted membership health funds

In the event you need a Gold level medical insurance policy, restricted health funds can often offer you cover that is substantially cheaper than open funds. 

Restricted funds are open to Australians working in lots of industries, from law enforcement officials, soldiers, reservists and defence contractors, to move employees and forestry, electricity and steel staff. Bank employees, health practitioners, teachers and staff of associated industries are also covered, with families (sometimes even siblings) and former employees also eligible.

Smart ways to pay your medical insurance

Some health funds offer you a reduction of as much as 4% in case you pay by direct debit or pay your annual premium prematurely. Of the massive five funds, though, only HBF and NIB give a reduction for this.

  • HBF – 4% discount for direct debit and three.85% in case you prepay your annual premium, which adds as much as a complete discount of seven.85% in case you pay your annual payment by direct debit.
  • NIB – 4% discount for direct debit.
  • HCF, Medibank and Bupa don’t give a reduction for direct debit or prepayment of your premium.

Funds with direct debit or prepay discounts include:

  • Australian Unity
  • CBHS Corporate Health
  • CUA
  • Doctors
  • Emergency Services Health
  • HBF
  • Health Partners
  • HIF
  • ING
  • Latrobe
  • Mildura
  • Navy Health
  • NIB
  • Police Health
  • St.LukesHealth
  • Transport Health
  • TUH.

Cheaper medical insurance for young and old

Higher medical insurance rebates for 65 yr olds

To assist with the price of medical insurance, the Australian government pays a rebate on hospital, extras and combined health cover policies for people 65 and over.

man at hospital going over documents with a doctor

The rebate is income tested and to get the total rebate of 24.6% your loved ones’s income must not be over $180,000 (or $90,000 for singles and single-parent policies). The rebate reduces in case your income is higher, and no rebate is paid if your loved ones earns greater than $280,000 (or $140,000 for singles and single-parent policies).

Once the oldest person in your policy turns 65, the rebate increases. The rebate tiers for couples and families are (until 1 April 2023):

  • 28.7% for income as much as $180,000
  • 20.5%  for income between $180,001 and $210,000
  • 12.3% for income between $210,001 and $280,000.

Once the oldest person in your policy turns 70, the rebate increases again. The rebate tiers for couples and families are (until 1 April 2023):

  • 32.8% for income as much as $180,000
  • 24.6%  for income between $180,001 and $210,000
  • 16.4% for income between $210,001 and $280,000.

Youth discounts

Some health funds offer discounts to latest customers who enroll before they turn 30. 

  • You may get 2% off your premium for each yr you are under 30. 
  • This goes as much as a maximum of 10% for people aged 18–25.
  • In the event you stay on that policy, you may keep getting the total discount until you switch 41, then it reduces by 2% annually. 
  • With some health funds, you’ll be able to even keep it while you switch cover.

Health insurers may offer discounts on just some or all of their policies. Of the five big health funds, Bupa, Medibank and NIB offer youth discounts. HBF and HCF haven’t introduced them.

There are a number of funds that supply youth discounts on some or all of their policies. They include:

  • AAMI
  • AHM 
  • AIA 
  • Apia
  • Bupa
  • CBHS and CBHS Corporate Health 
  • Hunter Health 
  • CUA Health 
  • Defence Health 
  • Doctors’ Health
  • Frank
  • GMHBA 
  • Health Partners 
  • ING
  • Latrobe Health
  • Medibank Private 
  • Mildura Health Fund 
  • NIB 
  • Peoplecare 
  • Phoenix Health
  • Qantas 
  • Queensland Country Health
  • Reserve Bank Health 
  • Suncorp
  • TUH 
  • Union Health
  • Westfund

Last updated May 2022.


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