Can I get a discount on my private health insurance?

Health insurers are limited by legislation on any promotional or loyalty discounts they can offer their members. 

But there are a couple of ways you can make your premium more affordable.

Australian Government Rebate on private health insurance

This is the incentive from the government to help lower the cost of health insurance. The rate of rebate is determined by income and the age of the oldest person on the membership. Most privately insured Australians receive some level of rebate – and most receive their rebate in the form of a lower premium. It can also be received as a refundable tax offset.

Age-based discount

This is a long-term discount available to 18–29-year-olds who take out their own eligible hospital policy.  An 18–25-year-old can lock in the maximum available discount of 10%. The rate then drops to 8% when a 26-year-old joins; 6% for 27-year-olds; 4% for 28-year-old and 2% for 29-year-olds. Once someone attracts the age-based discount they will retain that level of discount and receive it every year while they hold an eligible hospital policy (until age 41). The discount is cancelled if there is a break in cover. And for those who continue to hold an eligible policy, the discount phases out by 2% each year after they turn 

Avoid a Lifetime Health Cover loading

While we’re talking about discounts, it’s worth thinking about avoiding a higher premium in the first place. The Lifetime Health Cover loading increases premiums for people who leave it until later in life to take out hospital cover. The age threshold is 1 July after someone has turned 31. There are special provisions for people older than 31 if they are new migrants, Australians who lived overseas or serving members of the ADF. A loading of 2% is added for each year someone delays taking out cover and can increase to a maximum of 70%. Once a loading is in place, it will remain until hospital cover has been held for 10 continuous years. So it makes sense to choose hospital insurance by age 31 to avoid paying a decade of higher premiums.

Transition from the ADF

To help make transition from the ADF a smoother experience, Defence Health offers a 10% discount for the first 12 months after completing service. The discount is applied to the entire premium payable for a single, couples or family membership. The transition discount can be combined with the age-based discount, if applicable.

​​Recognition for ADF service

Defence Health also provides recognition for the service of our ADF veterans. After the 12-month transition period, Defence Health applies a 5% ongoing discount for veterans with a White Card to eligible policies.  

No matter what your combination of rebate and eligible discounts, you can be confident that Defence Health will keep your premium as affordable as possible. Because we’re not-for-profit, there will always be more for members at Defence Health.