Age-based Discount

From 1 April 2019, insurers will have the option to offer people aged 18–29 years discounts of up to 10 per cent of their private health insurance hospital premiums. People will retain that discount until they turn 41, when it will be gradually phased out.

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From 1 April 2019, insurers will have the option to offer people aged 18–29 years discounts of up to 10 per cent of their private health insurance hospital premiums. People will retain that discount until they turn 41, when it will be gradually phased out.

The allowable discount will be two per cent for each year that a person is aged under 30, to a maximum of 10 per cent for 18 to 25 year olds.

If a policy offers age-based discounts they will be available to both new and existing policy holders.

Your insurer will tell you if, and how, they will apply this change.

What if I change policies or insurers?

If you are transferring between policies or insurers, you should ask your insurer if your existing discount will continue to apply to the new product. You should confirm this prior to changing so you know whether your discount is transferred.

Insurers will be able to choose whether their age-based discounted products honour existing age-based discounts when a consumer transfers between discounted products and insurers.

What are the discount rates per age?

Person's age when they became insured under hospital policy offering discounts*Percentage discount that insurer may offer
18-2510
268
276
284
292
300

If you are on a couple or family policy, your discount is calculated as an average between the individual discount of the two adults. For example, if one person has a 10% discount and the other person has a 6% discount, the total discount applied to the policy is 8%.

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.

How is the discount phased out?

When you turn 41, the discount is reduced by 2%. So if you had an existing 10% discount, this reduces to 8% when you turn 41. For each further year, the discount is reduced by a further 2% until it reaches 0%.