Private health insurance reforms: Discounts for 18 to 29 year olds

Australians aged 18-29 years of age can be offered discounts of up to 10 per cent of their private hospital insurance premiums

Why is this important?

Who will benefit?

What impact will this change have on private health insurance?

Premiums for hospital cover for young Australians will be up to 10 per cent cheaper. The age-based discounts on hospital insurance premiums will be based on a person’s age when they become insured under a policy that offers discounts. The discount rates are shown below.

Table 1: Allowable age-based discounts by age
Person’s age when they become insured under a hospital policy offering discounts*Percentage discount that insurer may offer

* as a transitional arrangement for existing policy holders, their age when their insurer first introduces age-based discounts to their product. For example, a consumer who is 28 on 1 April 2019 could receive a 4 per cent discount, even if they first purchased hospital insurance when they were 26 years old.