Why should I keep private health insurance?
Are you generally healthy, rarely get sick and don’t go to hospital that often? If so, you might be wondering if you even need private health insurance.
The truth is it’s impossible to know what’s around the corner. One of the biggest benefits of private health cover is knowing you have more comprehensive protection if the unexpected happens.
We're sharing eight reasons why private health insurance is worth it, so you can decide if taking out a policy is right for you.
1. Chances are you’ll use it
Private health insurance isn’t just for emergencies. It can help you with everyday health needs, too. You could use it to cover the cost of regular physio appointments because of an injury. Or you might use it for a last-minute emergency trip to the dentist. Maybe you’re using it for regular psych appointments to help you navigate through a tough time.
No matter the reason, it turns out a lot of Aussies have private health. In fact, more than half the Australian population (13.6 million people) have private health insurance.
When you’re looking at the potential costs, having private health insurance gives you additional reassurance. nib paid an average of $3,586 per hospital admission.1 With insurance, you could be saving thousands on unexpected expenses.
2. Shorter wait times and low out-of-pocket costs
Without private health insurance, you could be waiting a long time for treatment. Did you know that in 2023–2024 about 50% of patients waited at least 46 days for their elective surgery? That’s a long wait! And if you don’t have hospital cover, you could pay significant out of pocket expenses. With hospital cover, you can skip the queue and choose when and where you receive treatment.
3. Get the private hospital treatment you want
Private health insurance gives you more control over your treatment. With nib Hospital cover, you can:
Choose your preferred specialist
Attend a hospital or day facility that suits you
Pick your doctor and time for treatment
Stay in a private room for greater comfort during your hospital stay.
If you’re an eligible nib member, you can take advantage of our Health Care at Home services. This is a great option to bring hospital treatment to your doorstep, so you can focus on rest and recovery.
4. Emergency protection
nib offers Ambulance cover to help pay for an ambulance (excluding states and territories that have ambulance services provided by the Government).
If you don't have ambulance cover and you need an ambulance, you would have to pay as per the rules and regulations for the State that you reside in. Even if someone called for an ambulance on your behalf, you would still be out of pocket.
The average ambulance claim for nib members in financial year 2023 was $1,000.2 And we paid over $12 million in total ambulance claims in financial year 2024.1 If you’re with nib, all our cover options include unlimited emergency ambulance.
5. Have protection when accidents happen
It’s not just ambulance fees you have to keep in mind. Public hospital healthcare (including emergency treatment) is free for most Aussies. But if you need extra treatment, that’s when costs and wait times quickly add up.
A selection of nib’s Hospital covers offer extra protection against the unexpected through the Accidental Injury Benefit. If you have an accident and go to a hospital emergency department or your GP within 72 hours of an accident, you may be eligible for benefits for up to 90 days following the accident.3
6. You can save at tax time and avoid government surcharges
What is the Medicare Levy Surcharge?
Having private hospital cover can help you avoid the Medicare Levy Surcharge (MLS). Without cover, you could pay extra at tax time if you earn over $101,000 as a single or over $202,000 as a couple, family or single-parent family. For example, if you earn $150,000, are single and don’t have health insurance, you could pay an extra $1,875 in tax.
Want to know how much extra tax you might pay without hospital cover? Use our MLS calculator.
What is Lifetime Health Cover loading?
If you don’t have private hospital cover by 1 July following your 31st birthday, you might have to pay Lifetime Health Cover loading (LHC). LHC is an initiative to encourage people to take out private hospital cover earlier in life.
If you get private health cover before your 31st birthday, then you can avoid the 2% loading on top of your premium. The LHC loading is applied to your health cover when you join and you’ll need to pay this loading for 10 consecutive years before it ceases to apply.
You can use the LHC loading calculator to estimate how much extra you might have to pay.
What is the Australian Government Rebate?
To make health insurance more affordable, the Government offers the Australian Government Rebate (AGR). If you earn $158,000 or less as a single or $316,000 or less as a family in a year, you’re eligible for the rebate. You can claim the AGR as reduced premiums during the year or as a rebate when you lodge your tax return.
7. It’s easier to stay healthy
Medicare covers some services, but it doesn’t cover things like dental, optical or physio. For these services, you’ll be out of pocket unless you have private health insurance. Whether it's getting a new pair of specs or visiting a physio session, private health insurance helps you avoid paying full price. This makes it easier to stay healthy for less.
On top of that, nib members can enjoy exclusive pricing on GP telehealth through our partner hub.health.4 You can save time and skip the hassle to chat with a medical doctor or refill your prescription. Plus, your treatment can be delivered straight to your door! This makes it easy and convenient to take care of yourself and get more value from your private health cover.
8. Save on everyday expenses
Private health insurance isn’t just about access to health services when you need them. It’s also about the benefits that make life easier and more rewarding. If you have nib health cover, you can access the nib Rewards programs. Enjoying discounts and special offers for having health insurance? Yes please.
From saving on essentials to treating yourself, these rewards go beyond healthcare to support you. Plus, you’ll find offers tailored to health and wellbeing to help you be your best while getting more value from your membership.
Is my health cover right for me?
Wondering if your health cover still suits your needs? Get in touch with us today – we can help you get the most out of your health insurance. Whether it’s reviewing your cover to pay for services you actually need or adjusting your excess to reduce premiums, we’re here to help. Give us a call on 13 16 42 or hop online and chat with, nibby.
1Figures are general claims statistics taken for the full financial year July 1 2023 – June 30 2024 for nib Health Insurance.
2Average ambulance charge incurred by nib members between July 2022 and June 2023 (excluding TAS and QLD residents).
3Accidental injury benefit is available on selected Hospital covers. Members must present for treatment with a medical practitioner or at a hospital emergency department within 72 hours of an accident. Benefit may apply after the member has been admitted as an inpatient (but within 90 days of the Accident). Excludes consultations and treatments performed at an Emergency Department. Additional T&Cs apply.
4Offer valid until 30 June 2025 for hub.health telehealth and medical consultations only. The offer does not apply to medical certificate purchases, medication costs or shipping costs. The discount cannot be used in conjunction with hubPass membership or with any other promotional offer or discount. nib and hub.health reserve the right to withdraw this offer at any time. hub.health Terms and Conditions will apply. hub.health is owned and operated by Midnight Health Pty Ltd, of which nib Group is a majority shareholder. hub.health Terms and Conditions will apply.