21 May 2026
CHOICE has found health insurers have increased the price of their premium Gold-level policies – the health insurance older Australians need the most – to nearly double the amount of the government’s latest proposed rebate changes.
“The government announced earlier this year they’re planning to remove age-based health insurance rebates, so that the rebates are solely dependent on your income,” says CHOICE Data Analyst, Mark Blades.
“They argue these changes will create a fairer system but the bigger problem here is that many people, especially older Australians, are already facing significant price hikes for their Gold-level policies,” says Blades.
“From 1 April 2027, health insurance rebates will be standardised onto the 24% rate, regardless of your age. This means people over 65 will get a 4% lower rebate and over 70s will get an 8% lower rebate,” says Blades.
“But in recent years, Gold-level policies have significantly increased, with the government
announcing an average premium increase of 4.41% across all health insurance policies this year.
“Our research found the increase applied by the big five health funds to Gold-level cover was more than triple the average at 13.3%,” says Blades.
“For a single person on a Gold-level policy, this amounted to a $555 annual increase, and for couples and families, a $1110 increase, before the rebate. So, it’s unsurprising that we’ve seen the number of people with Gold coverage dropping significantly – from 40% in 2020, to 30% in 2025, with no indication of changing as prices continue to rise,” says Blades.
“If you’re on a top-level policy and understandably feeling worried about the impact of the government’s latest rebate changes, we’ve put together some of our top tips to help you save on your health insurance,” says Blades.
CHOICE’s top saving tips for older Australians:
1. Check what services your top-level cover provides before downgrading
“Older Australians often consider downgrading when a policy includes pregnancy services, as they don’t want to pay extra for something not needed. However, these policies are also suited to people over 65 who want coverage for surgeries typically needed later in life, such as hip or knee replacements,” says Blades.
2. Choosing a higher excess may be an option
“You can choose to pay a higher excess of up to $750 per person and $1500 per couple/family to reduce your premiums. If you are expecting to make a claim soon, be sure to check if common day surgeries, like cataracts, have an excess applied as some policies will have exemptions,” says Blades.
3. Do you need extras insurance?
“Extras insurance pays back a portion of the cost for services like dental, optical and physio. Yet, the average cost of these policies is usually double the amount you will claim in benefits, so in many cases you are better off paying upfront instead of through an extras policy,” says Blades.
