Health insurance explained

Also known as hospital cover, hospital insurance helps cover costs when you're admitted to hospital. It covers things like your doctors' fees, accommodation and theatre fees.

Learn more about hospital cover

While Australia has one of the best health care systems in the world*, there are many benefits to having hospital cover.

Hospital insurance helps cover some of the costs when you're admitted to hospital. It can help cover some of the costs for things like doctors' fees, accommodation and theatre fees.

With hospital cover, you'll also be able to choose your preferred hospital and doctor to receive treatment from, avoid long public waiting lists and gain access to a private room^*.

Learn more about the difference between private and public hospitals 

* Australian Government Department of Health (2019).

HBF has a range of hospital cover products to suit all budgets. Private Health Insurance with hospital cover helps cover the cost of 'inpatient' services — these are treatments you receive when you're admitted to hospital for care (e.g. for surgery). The price of each product is based on the level of restrictions and exclusions on these eservices.

Compare all cover options

The Medicare Levy Surcharge (MLS) is a tax applied to people who earn above a certain income and don’t have an appropriate level of hospital insurance. The tax is designed to reduce the strain on the public system by encouraging people to go to private hospitals instead.

This means you could have to pay an additional tax of between 1% - 1.5% for every day you don't have an appropriate level of hospital cover and you are:

• a single with an income for MLS purposes that is greater than $101,000; or
• a couple or family whose combined income for MLS purposes is greater than $202,000.

To reduce or avoid the MLS, you (and everyone in your family) must hold an appropriate level of hospital cover. If you or your family is only covered for extras, you will have to pay MLS if your income is over the thresholds noted above.

When you do get hospital cover, keep in mind that you’ll still pay the MLS for the part of the year you weren’t covered. You’ll only avoid the MLS completely if you’ve held hospital cover for a full financial year. Learn more about MLS.

This is a guide only. You should speak to a financial advisor or registered tax agent who will be able to take into account your income and personal situation, including any changes that occur during a tax year.

Yes. With HBF, you can purchase hospital cover on its own. Hospital insurance helps cover some of the costs when you're admitted to hospital. It can help cover some of the costs for things like doctors' fees, accommodation and theatre fees.