The age-based discount

Learn about health insurance discounts and start comparing your options!

Average customer rating: 4.3/5
Written by Joshua Malin
Reviewed by Steven Spicer
Updated 09 May 2024

What is the age-based discount?

To encourage younger people to take out cover, the Australian Government introduced the age-based discount in 2019, which allows funds to reduce hospital premiums by a certain percentage based on the person’s age when they first take out cover.

The age-based discount could reduce the premiums for eligible hospital cover policies held by Australians aged 18 to 29 by up to 10%. Below is an example of the discounts available and what these savings could mean for you:

Discount Age* Discount on a $1,500 (per year) hospital policy
10% 18-25 $150
8% 26 $120
6% 27 $90
4% 28 $60
2% 29 $30
0% 30 $0

Source: Private Health Insurance Ombudsman – Age-based Discount. Accessed January 2024.

*Age when you first purchase a hospital policy offering discounts.

So, if you’re a 25-year-old and paying roughly $1,500 a year for hospital cover, you could save up to $150 each year – a percentage discount that you’d enjoy every year until you turn 41, provided that you hold a policy (or switch to a policy) that allows you to retain your age-based discount. At this age, it’ll start to decrease 2% per year until it’s no longer available to you.

The purpose of the discount is to help make health insurance more affordable for young adults and encourage them to take out cover earlier in their lives. You just need to hold continuous cover on an eligible product (meaning you can’t have any gaps where you don’t have cover) or you might lose it.

Getting a discount

It’s optional for health funds to offer products that include an age-based discount. This means that even if you’re an eligible age and have hospital cover, there’s a chance your current insurer might not offer the age-based discount for your policy.

Keep in mind also that the age-based discount only applies to hospital cover. Policies that only cover care and treatment outside of a hospital, known as extras cover, will not attract the age-based discount.

You also won’t be able to receive the discount if you’re listed under your parents’ health insurance policy. You’ll need to have your own policy – or a couples or family policy with your partner – to be eligible.

What if my health fund doesn’t offer an age-based discount?

Will I receive a discount if I’m between 18 and 29 and already have health insurance?

Keeping your discount

How does the age-based discount work after I turn 41?

Can I keep my discount if I change my health fund or policy?

What happens if I cancel my policy then take out cover again later?

More information

How does the age-based discount work on a couples or family policy?

Is there any other health insurance discount I qualify for?

Meet our health insurance expert, Steven Spicer

Steven Spicer
Executive General Manager – Health, Life & Energy

As the Executive General Manager of Health, Life and Energy, Steven Spicer is a strong believer in the benefits of private cover and knows just how valuable the peace of mind that comes with cover can be. He is passionate about demystifying the health insurance industry and advocates for the benefits of comparison when it comes to saving money on your premiums.