Cost-of-living pressures have seen more Australians prioritise health insurance.

Stats show more than 300,000 people took out hospital cover in the year to September 30, pushing total hospital policyholders to a record 12.3 million, or 45 per cent of the population.

Overall, 15 million Australians - 55 per cent of the population - now have some form of private health insurance, according to the Australian Prudential Regulation Authority (APRA).

The rise has been driven by a surprising 5 per cent jump in uptake among Australians in their 20s. Such growth is typically driven by older people. 

Young policyholders are increasingly using their insurance for mental health, maternity care, endometriosis treatment, dental services, and drug and alcohol treatment. 

“We’ve seen a dramatic increase in the number of young people accessing mental health treatment since the pandemic began,” Private Healthcare Australia CEO Dr Rachel David noted.

The surge in private health cover should help alleviate strain on Australia’s public health system. 

“We know an increasing number of Australians value rapid access to private hospital treatment with a doctor of their choice if they need it, as well as subsidised dental, optical and other services,” Dr David said. 

“This takes pressure off our public hospital system, so it’s there for people who need it most.”

Analysts say health funds have not only resumed increased payments to hospitals - up 7.5 per cent in the year to September 2024 - but have also returned $4.73 billion in pandemic-era savings to consumers, exceeding the $4.55 billion saved during reduced claims. 

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