Need to know
- Health insurance premiums will go up on 1 April – now's the time to review your policy and make sure it's the best one for you and your family
- Many health funds charge single parents 10 to 30% less than two-parent families. If you’re paying the same as a two-parent family, review your policy
- Use our health insurance comparison tool to make sure you're getting the best value for money on the cover you need
Single-parent families are unfairly treated by health insurance providers in ways that don't make a lot of sense.
While two-parent families pay the same premiums as couples (meaning their kids are insured for free), single parents are charged extra for their children's health cover.
At the same time, single parents' health insurance premiums are higher than singles without kids, and some funds even charge single parents the same premium as two-parent families. Doesn't seem fair, does it?
Aside from premiums, though, insurers do give special treatment to kids, whether you're a single or a two-parent family, including:
- no excess or co-payments for children if they need to go to hospital
- free extras services for children – if they go to the dentist, for example
- extended coverage for students up to the age of 25.
Read more about perks for children in The best health insurance for families.
The four tiers of health insurance
Health insurance policies are categorised into four tiers:
- Basic – very little if any cover in a private hospital
- Bronze – low cover
- Silver – medium cover
- Gold – full or top cover
In between these main tiers there are also Silver Plus, Bronze Plus and Basic Plus policies that cover at least one service more than the normal Silver, Bronze or Basic policies. For example a Silver Plus policy could include cover for pregnancy or cataract surgery (services usually only covered under Gold policies).
Since April 2007, health insurance funds have been able to give single parents a reduced premium compared to the family rate. Before that time, health insurance regulation meant that single parents always paid the same premium as two-parent families.
So single parents generally don't pay as much as they used to, but they still pay more than singles. And not all health funds are on board – see our list below of health funds with no discount for single parents.
For the funds that do offer lower premiums to single parents, the amount can vary. Most of them charge single parents 10 to 30% less than families.
CHOICE tip: If you've been a loyal customer and stayed with the same fund and policy for the past ten years or more, you may be stuck in the old system. Check with your insurer.
Health funds may also offer single parents lower premiums for hospital cover, but not extras cover. The health funds listed below offer single parents cheaper premiums than those they offer two-parent families, for at least some of their policies.
Health funds with no discounts for single parents
These health funds charge single parents the same as two-parent families for all of their policies:
- Australian Unity
- CDH Benefits Fund
- Latrobe Health Services
Check what's included
Discounts aren't everything. Some funds that charge single parents the same as families may offer cheaper policies with better value for money than other funds that do offer a discount. Use our tool to compare health insurance and see which policies are best for your situation and needs.
If you've finished having children, you may be considering downgrading to a policy without pregnancy and fertility cover – but this isn't as simple as it might seem.
In principle it makes sense not to pay for cover you won't be using, but very few policies exclude pregnancy and fertility services without also excluding things you may still need, and those that do are often only a few dollars cheaper than full cover policies. Some are even more expensive than policies that cover everything.
You might find yourself without cover for something you'll actually need
There's another pitfall: policies that restrict or exclude some procedures can be changed to exclude more procedures. So, unless you keep fully on track of all the material the fund sends you and regularly check your policy, you might find yourself without cover for something you'll actually need.
Therefore, you tend to be better off with a policy that covers everything, as funds are much less likely to add restrictions to those.
Five steps to better, cheaper health insurance
Our health insurance experts have put together a handy five-step action plan to help you through the process of reviewing, comparing and switching your health insurance policy.
Just a few minutes could potentially save you hundreds of dollars per year: one of our CHOICE editors saved herself over $1800 annually just by reviewing and switching cover for her young family. Follow these five easy steps: