A new survey by Compare the Market reveals an increasing number of Australian adults are going into debt to pay for medical expenses for themselves or a loved one.
In 2025, 12% of Australian adults had medical debt, but in 2026 that has risen a shocking 150% to almost one third of Australians (30%).
When breaking the data down by age category, it was millennials (25-44 years old) who were the most likely to have incurred debt for medical expenses.
The leading cause was dental work, accounting for 14% of those with medical debt. Specialist treatment and consultations was next at 11%, followed by expensive prescription medication and medically necessary elective surgery, both at 9%.
| Top causes of medical debt | Australians with medical debt |
| Dental work | 14% |
| Specialist treatment or consultations | 11% |
| Expensive prescription medication | 9% |
| Medically necessary elective surgery | 9% |
| Mental health care | 6% |
| Life-threatening emergency surgery | 5% |
| Cosmetic surgery | 4% |
| Physical therapy/rehabilitation | 4% |
The average amount of medical debt in Australia is AU$3,844.98.
Steven Spicer, Executive General Manager of Health at Compare the Market, explains how people in countries with public healthcare systems can still go into medical debt.
“In some circumstances the government may cover a large portion of the cost, but not the whole fee. This can potentially leave patients out of pocket for healthcare treatment,” Mr Spicer says.
“Furthermore, you may be on a lengthy public waiting list. For some, they would rather pay privately for treatment to skip the waiting list, especially if they are living with a painful or difficult medical issue that could worsen over time. This is where private health insurance comes in.
“Private health insurance is a fantastic product for those wanting to be proactive about their healthcare and get greater choice, while lowering the out-of-pocket cost for treatment compared to paying for it privately without health insurance.”
To learn more about the survey, visit: https://www.comparethemarket.com.au/health-insurance/features/health-debt-survey/
For interviews and more information, please contact:
James McCay | +61 450 930 374 | [email protected]
Compare the Market is a comparison service that takes the hard work out of shopping around. We make it Simples for Australians to quickly and easily compare and buy insurance, energy, and home loans products from a range of providers. Our easy-to-use comparison tool helps you look for a range of products that may suit your needs and benefit your back pocket.
