The most expensive health insurance policies: How to find a better deal

Have you unknowingly ended up with one of the country’s most expensive health insurance policies?

Health insurance is a major monthly expense, and premiums went up an average of 4.41% on 1 April (despite policy cover staying mostly the same). It’s yet another cost that keeps creeping higher. If you think paying more and more for the same product sounds like a bad deal, we agree!

Not to mention the fact that if you’re on a top level Gold policy, you are likely being slugged with some of the biggest increases. CHOICE experts have found the price of top level Gold hospital cover increased by about 71% in six years (as opposed to price increases of around 21% on average across all other levels of cover).

That’s why we’ve made a list of the most expensive policies in each state, and crunched the numbers to show you how much you could save if you switched to the cheapest equivalent Gold policy. Singles could save over $2000 per year, and if you’re a couple or a family, the savings are even greater.

It’s always a good time for a policy check

If you haven’t switched your health insurance provider in a while, now’s the time to reassess your situation. What was once a great deal when you signed up may no longer be the cheapest on offer. Find the best policy for you with our health insurance comparison tool.

You can often make extra savings by taking advantage of introductory offers for new customers, such as a certain number of weeks of free cover. And you can lock in the saving by paying for at least 12 months of insurance upfront (prices go up on 1 April every year, but if you’ve pre-paid a year in advance, you lock in the current year’s price).

Remember that when you switch to a policy with a level of hospital cover that it the same as, or higher than your current policy, your waiting periods won’t be affected.

How to find the best deal on your health insurance

CHOICE insurance expert Mark Blades recommends checking to see if you can get a better deal on your health insurance at least once every 12 months, or any time you get a letter from your fund about an increase to your premium.

“It takes just five minutes and can save you hundreds, or even thousands,” he says.

“The CHOICE health insurance comparison is the best place to compare prices as we cover the most funds and we’re the only nonprofit consumer advocate comparison site. Commercial sites are not independent and prioritise the insurers’ policies they receive commission from when they recommend options for you.“

When comparing prices, either on a comparison site or through your own research, Mark says you should make sure you’re comparing apples with apples by selecting the correct level of rebate you’re getting from the government and the same excess. 

“The same cover with a different insurer could be thousands of dollars cheaper,” he says.

The most expensive policies in Australia

ACT & NSW

• AHM, Advanced Hospital Gold: $5740
• AAMI, Gold Hospital*: $5560
• Suncorp, Gold Hospital*: $5560

Northern Territory

• Health Partners, Gold Hospital Advantage: $3430
• Qantas, Gold Top Hospital*: $3300
• Suncorp, Gold Hospital*: $3250

Queensland

• AHM, Advanced Hospital Gold: $5950
• AAMI, Gold Hospital*: $5760
• Suncorp, Gold Hospital*: $5710

South Australia

• AHM, Advanced Hospital Gold: $5280
• Health Partners, Gold Hospital Advantage: $4760
• GMHBA, Gold Optimum: $4700

Tasmania

• AHM, Advanced Hospital Gold: $5670
• Health Partners, Gold Hospital Advantage: $5520
• Suncorp, Gold Hospital*: $5060

Victoria

• AHM, Advanced Hospital Gold: $6190
• Suncorp, Gold Hospital*: $6000
• AAMI, Gold Hospital*: $5990

Western Australia

• AHM, Advanced Hospital Gold: $4740
• Health Partners, Gold Hospital Advantage: $4710
• HBF, Gold Hospital Elevate with Ambulance: $4520 ($4490 without Ambulance)

*All these policies are issues by NIB.

Note: Prices are for a single Gold policy with $750 excess, per year, rounded to the nearest $10. Figures do not include the health insurance rebate or discounts. Source: data.gov.au as of April 2026. 

Simple ways to save money

As you can see from our results, many of the most expensive policies for standard Gold cover are from the big funds. 

“A great tip to save money on health insurance is to look beyond the well-known funds that spend lots on advertising, and consider smaller insurers that are often nonprofit,” says Mark. 

Another way to save is to prepay your premiums. All funds allow you to prepay your premium at the current rate for at least 12 months, so if you prepay your full annual premium before the date of the increase, you can delay paying a higher premium for 12 months, leaving more cash in your pocket.

Here’s how much you could save in each state by switching from these pricey policies to the cheapest equivalent policy. 

The most expensive Silver policies

The largest savings are generally available for Gold policyholders, but if you have a Silver policy, you can also likely find a cheaper deal that will give you the same cover.

“When we looked at the most expensive Silver policies across Australia, we found that if you hold one of those pricey policies, you could save anywhere from $230 up to $410 per year by switching,” says Mark. 

“That’s money you could have back in your pocket simply by doing a little research and making a phone call or two.

“Many health insurance funds will manage the switching process for you too, so once you sign up with them, you don’t have to call your old insurer to cancel – they’ll manage it for you. And if you’re switching to a policy with the same level of cover, your waiting times won’t be affected,” he explains. 

If you’re looking to save money on your premiums, Mark also recommends considering a higher excess when asking for quotes. 

“If you’re currently paying a premium with a $500 excess (this is the amount you’d have to pay if you make a claim) and you don’t anticipate having surgery or needing hospital treatment in the next one or two years, you can save money by increasing your excess to $750,” he says. 

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Pru Engel

Pru Engel is the Audience and Engagement editor at CHOICE. Her job is to ensure as many Australians as possible know about the great work we do at CHOICE.  She works closely with our testers and experts to find the gems of information in our data and research that will resonate with Australian consumers and help them make the best decisions, whether they're purchasing an air fryer, looking for a new mattress or trying to find the cheapest car insurance. She also helps to drive meaningful change for consumers by collaborating with our Campaigns team on content covering issues such as grocery pricing, product safety and scams.  Prior to CHOICE, Pru worked as an editor at many of Australia's leading food and lifestyle titles.  Pru has a Bachelor of Arts in Communication (Journalism) from the University of Technology, Sydney. Find Pru on LinkedIn.

Pru Engel is the Audience and Engagement editor at CHOICE. Her job is to ensure as many Australians as possible know about the great work we do at CHOICE.  She works closely with our testers and experts to find the gems of information in our data and research that will resonate with Australian consumers and help them make the best decisions, whether they're purchasing an air fryer, looking for a new mattress or trying to find the cheapest car insurance. She also helps to drive meaningful change for consumers by collaborating with our Campaigns team on content covering issues such as grocery pricing, product safety and scams.  Prior to CHOICE, Pru worked as an editor at many of Australia's leading food and lifestyle titles.  Pru has a Bachelor of Arts in Communication (Journalism) from the University of Technology, Sydney. Find Pru on LinkedIn.

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Mark Blades