The age-based discount

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A guide to the age-based discount for health insurance

Updated March 06, 2024
Written by Joshua Malin
Reviewed by Steven Spicer

What is the age-based discount?

In the past, the Australian Government didn’t allow health funds to offer discounts based on age. However, to encourage younger people to take out cover, the 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%. Check out which discounts are 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: Accessed February 2024

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

Which health funds offer the aged-based discount?

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.