FREQUENTLY ASKED QUESTION

How is the cost of my hospital cover calculated?

Hospital insurance is governed by what’s known as ‘community rating’. Community rating dictates that health insurance must be equally accessible and cost the same for everyone regardless of their health status, claims history or personal traits like gender or age.

While the base price of a hospital insurance product (like HBF Bronze Hospital Plus) will be the same for everyone living in your state, the final cost of your hospital insurance may be different to what your neighbour pays because of several different factors:

1. Excess

An excess is a sum of money you agree to pay upfront when you’re admitted into hospital for treatment. Generally the higher your excess, the lower your premium.

2. Lifetime Health Cover (LHC) loading

The LHC loading is an additional cost applied directly to a premium. It only affects people aged 31 or older who do not currently have hospital insurance who decide to buy it after turning 31. It’s an Australian Government incentive designed to encourage people to take out hospital insurance earlier in life and maintain it.

Learn more about Lifetime Health Cover Loading

3. Australian Government Rebate on Private Health Insurance

The rebate is an Australian Government incentive designed to make health insurance more affordable. It’s calculated based on your age and income and comes in the form of a refund; the rebate can either be applied directly to your premium to reduce its cost or be claimed when you submit your tax return.

Learn more about the Australian Government Rebate on Private Health Insurance

4. Scale

The price of hospital insurance will vary depending on whether you get cover for one or two adult members on your policy.

5. Discounts

Depending on how often you pay your premiums, you may receive a discount on eligible policies. This discount applies whether you pay each time you receive a statement from us or by direct debit.

Payment frequency	Discount (%)	Discount (weekly equivalent)
Quarterly	0.48%	1/4 week per year
Half yearly	1.92%	1 week per year
Yearly	3.83%	2 weeks per year

HBF direct debit discounts

You can also receive a 4% discount on your premium if you choose to pay by direct debit for your hospital insurance policy (excludes HBF Urgent Ambulance only policies).