4 tips to maximise the value of your health insurance

Health insurance is a great way to manage medical costs throughout the year - but that's not the only benefit. There may be extra perks on offer which could help you get more for your money.

With the cost of living on the rise, many Australians are looking for ways to stretch their dollar or get more value from everyday expenses. If you're among them, it might be time to take a closer look at your health insurance.

According to the latest data from APRA, 45% of Australians have hospital cover and 55% have extras cover. It's an expense that many people consider essential, or are simply unwilling to give up, and it's easy to understand why.

The APRA data indicates that, during the December 2024 quarter, insurers paid out $4.8 billion in hospital treatment benefits and $1.7 billion in extras benefits to customers. Clearly, Australians are getting a lot of value from their health insurance - but we think there's still scope to squeeze out a little more.

Take a look at these tips to see if you can get more value from your health insurance:

Look out for membership programs, discounts and perks

Some insurers have started offering additional benefits to members - often to help support their overall wellbeing - and they can add significant value to your policy.

These perks come in many different forms and, depending on your insurer, you could benefit from wellbeing programs, partnerships with service providers, access to online subscriptions, and discounts on health-related products.

For example, eligible¹ HIF members can access tailored programs for cancer support, mental health, weight-loss and even at-home chemotherapy². Eligible members can also access a range of online tools that would otherwise require a paid subscription, including Nourish Baby for new parents and Mindset Health for digital hypnotherapy. Discounts on glasses, travel insurance and pharmacy can also lower general living expenses.

Whichever health insurance brand you're with, it's important to check for perks to see if there's something that could benefit you, or your budget.

Learn more about HIF's perks

Make sure you're across the details of your extras

Extras policies are packed with benefits but unless you know what they are, you have no chance of claiming them. Take some time to review all of your covered categories and specific benefits to make sure you're not missing any opportunities to claim. There may be some lesser-known perks you weren't aware of. For example, eligible³ HIF members can claim for remedial massage, medicinal cannabis, and skin cancer checks.

As well as being aware of what your benefits are, you need to know when they renew. Unless your health fund rolls some benefits over, they'll be refreshed every year. Different funds reset at different times (usually January 1 or July 1) so make sure you use them before you lose them.

Make the waiting period work for you

If you're getting health insurance for the first time or after break in cover, or even if you're upgrading your policy to a more comprehensive one, it's likely you'll have to serve waiting periods before you can access all of your benefits. But, there is a way to get around some of them.

Some insurers let members skip the standard extras waiting periods so you get the care you need, and the perks you want, as soon as your cover is approved.

For example, if you take out a combined hospital and extras policy with HIF by 30 June 2025, you can skip the 2-month wait on extras benefits. That means you can claim straight away on general dental, optical, chiro and physio (remember to use promo code 8W2M at the checkout though – and always check the T&Cs to ensure this is the right product for you).

Skip waiting periods with HIF

Save on tax and score rebates

Taking out health insurance doesn't just reduce your out of pocket costs for private healthcare, it may also deliver potential tax advantages.

For example, for the 2025-26 financial year, if you earn over $101,000, or $202,000 for a couple or family (for families with children, the thresholds are increased by $1,500 for each child after the first) and you, your spouse and dependent children do not have the appropriate level of health insurance, you could be required to pay an additional tax called the Medicare Levy Surcharge (MLS), which ranges from 1% to 1.5% of your income for MLS purposes taxable income.

For an individual earning $101,000, that could mean an extra $1,000 in tax.

However, you can potentially save this tax by taking out appropriate hospital insurance - but you need to do your homework and look at your personal financial situation carefully when examining policies available. An entry level policy such as HIF's Basic Plus Hospital Cover could be worth exploring.

The Australian Government also offers a rebate on private health insurance premiums to help make cover more affordable. This rebate is income-tested and age-based, meaning the amount you receive depends on your income and age bracket. It can be claimed as a reduction in your premium or as a tax offset when you lodge your tax return.

Get more from your health insurance

To maximise the value of your health insurance, you need to start seeing your policy as more than just a safety net for medical care or health must-haves.

Your health cover is packed with extra value when you look beyond the surface. By exploring membership perks, understanding all your extras benefits, taking advantage of promotions, and leveraging tax benefits where possible, you can stretch your dollar further while maintaining quality coverage.

In today's economy, maximising what you already pay for isn't just smart - it's essential.

Learn more about switching to HIF

Sources
APRA - Quarterly private health insurance membership and benefits summary
ATO - Taxable, accessible and exempt income

Footnotes
^{1, 3}Available to an HIF member that has purchased an eligible product and met payment requirements. Waiting periods, limits, exclusions, restrictions and co-payments apply. Refer to product factsheets and the Health Cover Guide for specific information in relation to products and benefits here. For more information regarding promotions and services please visit HIF.
²Each HIF Health & Wellbeing Program is subject to its own eligibility criteria. Review the eligibility criteria on dedicated program pages Health & Wellbeing Programs. You can also refer to product factsheets and the Health Cover Guide for more information here.