The Finance Algorithm

Health Insurance Comparison Tool

Compare private health insurance options and find the right cover level. See if hospital cover saves you money vs the Medicare Levy Surcharge.

Updated October 2026Built and checked by MaverickHow it's calculatedReport an error

Your numbers

Updates as you type
$
$95k

Used to check if you'd pay the Medicare Levy Surcharge without cover

Affects premiums and MLS thresholds

Higher levels cover more procedures but cost more

Extras cover dental, optical, physio, chiro, and more

32

Affects Lifetime Health Cover loading (2% per year over 30 without cover)

Affects Lifetime Health Cover loading calculations

The button asks our AI to explain these figures in words.

Health insurance vs MLS

Insurance (net)

$2,563

$214 / month

MLS cost

$0

0.00% surcharge

LHC loading

4%

2% per year past age 31

Gov rebate

24.1%

off your premium

What you're actually paying for

Hospital base + LHC loading + extras, less the income-tested government rebate.

$2,563net premium
Hospital base65.4%
LHC loading2.6%
Extras13.1%
Rebate saving18.9%

Insurance net cost vs paying MLS

Insurance costs more than MLS, but you get the cover, choice and shorter wait times.

$0MLS only$2,563Insurance net

Annual net cost by hospital cover tier

Higher tiers cover more procedures and cost more. For the surcharge, the tier doesn't matter: any hospital cover with an excess within the ATO's limits avoids it.

$1,531Basic$1,804Bronze$2,563Silver$4,111Gold
What the numbers say: No surcharge at your income; hospital cover would carry a 4% loading for 10 years of continuous cover. Only hospital cover satisfies the MLS: extras-only policies don't count. Check the government comparison site at privatehealth.gov.au before signing up.

How it works

Private health insurance in Australia is a complex decision: it's not just about health, it's about tax. If you earn over $105,000 (single), the Medicare Levy Surcharge (1-1.5%) means not having hospital cover can cost you more than basic cover itself. Add Lifetime Health Cover loading (2% per year past 30 without cover), and the financial incentives to get insured are significant. This tool compares the cost of each level of hospital cover, after the rebate and any loading, with the surcharge it would avoid.

  1. 1Enter your income to check MLS implications.
  2. 2Select your cover type (single, couple, family).
  3. 3Choose a hospital cover level.
  4. 4Pick the extras cover you need.
  5. 5Enter your age for LHC loading calculations.
  6. 6Get a cost comparison: each hospital cover tier against the MLS.

The figures today

The typical hospital policy anyone can buy costs $145.50 a month for a single at Bronze, $224.68 at Silver and $386.13 at Gold, before the government rebate, in October 2026 data.

Every hospital policy, cheapest firstHealth insurance

Worked examples

Single, $110,000 Income, No Cover

Michael, 34, earns $110,000 and has never had hospital cover. He's wondering if it's worth it.

Without cover: MLS at 1% = $1,100/year. LHC loading: 8% (4 years past 30). Basic hospital policy: ~$1,200-$1,500/year + 8% LHC = ~$1,296-$1,620. Government rebate (16.1%): saves ~$209-$261. Net cost: ~$1,087-$1,359. Verdict: insurance costs about the same as the MLS, BUT you actually get hospital cover. Get insured.

Family, $230,000 Combined Income

Sarah and James have a combined income of $230,000 with two kids. They currently have no hospital cover.

Without cover: MLS at 1% = $2,300/year. Family silver hospital policy: ~$3,500-$4,500/year. Government rebate (16.1%): saves ~$564-$725. Net cost: ~$2,936-$3,775. The insurance costs more than the MLS, but they get comprehensive family hospital cover. If they use even one hospital service, the cover pays for itself.

Questions people ask

Do I actually need private health insurance?
It depends on two factors: 1) Financial: if you earn over $105,000 (single), the MLS makes basic hospital cover cheaper than not having it. 2) Health: if you want shorter wait times, choice of doctor, or access to private hospitals. Young, healthy people under $105k can usually rely on Medicare alone.
What does each cover tier include?
Basic/Bronze: emergency & accident, some in-hospital psychiatric. Silver: adds most surgical procedures, joint replacements, eye surgery, pregnancy. Gold: everything including heart surgery, brain surgery, assisted reproduction, palliative care. Higher tiers are worth it if you anticipate needing those specific services.
Can I avoid Lifetime Health Cover loading?
LHC loading applies from July 1 after your 31st birthday. To avoid it, get hospital cover before that date. If you already have loading, it's removed after 10 continuous years of hospital cover. Some exemptions apply: overseas residents, Defence Force members, and those who had cover overseas.

The terms, in plain English

Medicare Levy Surcharge (MLS)
An additional 1-1.5% tax on high-income earners who don't have compliant private hospital cover. Separate from the standard 2% Medicare Levy.
Lifetime Health Cover (LHC)
A government incentive where premiums increase by 2% for every year over 30 you don't have hospital cover. Loading is removed after 10 continuous years of cover.
Private Health Insurance Rebate
An income-tested, age-adjusted government subsidy that reduces private health insurance premiums. Ranges from 0% to 32.2% depending on age and income, up to 24.1% for under-65s, rising to 32.2% for those 70+.
Hospital Cover Tiers
Standardised categories (Basic, Bronze, Silver, Gold) that make it easier to compare what different policies cover. Higher tiers cover more procedures.

Official sources

Medicare Levy Calculator

Calculate your Medicare levy and MLS to compare with private health costs.

Income Tax Calculator

See how private health insurance affects your overall tax position.

Tax Refund Estimator

Include the private health insurance rebate in your refund estimate.