How to keep private health cover with the rising cost of living

Published December 2025 | 5 min read
Expert contributor: Bernadette Fallon, Acting Head of Membership, HCF
Words by Angela Tufvesson

From reviewing your policy to accessing free health checks, here’s how to keep your private health insurance affordable while managing the cost of living.

It’s been a tough few years for many people, with rising inflation and the cost of essentials like food, petrol and utilities increasing, and salaries not always keeping up. Managing the cost of living can be stressful – you might be worried about making ends meet, including holding on to your private health insurance.

Reviewing your cover to make sure it suits your needs and making smart choices about how you use it can help you keep it affordable when money is tight.

As Australia’s largest not-for-profit health fund, we go above and beyond every day to put our members’ health first and have done so for over 90 years. Now more than ever, we’re committed to ensuring you and your family have access to affordable, quality care when you need it.

We want you to have the peace of mind that private health cover brings, so talk to us about support options if you’re having a tough time financially. Just call us on 13 13 34 and speak to our team.

Before you do, these tips can help you cut the cost of your private health cover and get the best value for your money.

Review your private health cover

Cancelling your health insurance may feel like one of your only options if money is tight, but Bernadette Fallon, HCF’s Acting Head of Membership, recommends first reviewing your private health cover to check it meets your current needs. This might lead you to switch to a more affordable product that fits your budget. For example, if you have HCF hospital cover, you might switch from a gold to silver policy, or from silver to bronze.

“During challenging periods, HCF offers flexibility and support to members to help them tailor their cover to their situation and evolving needs. We really take the time with members to understand their unique health needs and make sure they're not paying for services they no longer require, while still maintaining access to essential care,” says Bernadette.

“Members can choose hospital or extras cover that excludes certain services they may no longer need, such as pregnancy or orthodontic.”

Make your health cover more affordable

Bernadette explains there are ways to make your cover payments work better for you, starting with paying upfront. “HCF is one of the few funds that lets you pay your health insurance up to 18 months in advance and lock in that rate,” she says.

Choosing a higher excess – up to $750 for singles and $1,500 for families – can also help to lower your monthly premiums. It’s important to know this means you’ll pay more if you need to make a claim for a hospital admission.

Bernadette also recommends checking if you’re eligible for the government’s private health insurance rebate. The income thresholds change each year on 1 July, and if you’re eligible, the rebate will reduce your overall premium. “It’s income tested, meaning your eligibility and rebate amount depend on your income and age,” Bernadette explains.

If you’re looking at how to save money on extras, Flex My Extras offers a flexible $650 single limit, plus a $175 optical limit and $100 remedial massage limit^*, helping you get more back on extras you’ll actually use. Or, with Choose My Extras, you can select four extras services and swap unused extras^{^} as your needs change.

Meanwhile, HCF Hospital Basic Plus and HCF Hospital Bronze Plus are affordable HCF hospital cover options that cover you for things like emergency ambulance and appendicitis, but not pregnancy or cataracts.

Ask for support if you’re unemployed

If you’re an eligible member+ and find yourself unexpectedly unemployed, we may be able to cover the cost of your health cover for up to six months. “We can support with Involuntary Unemployment Assistance,” Bernadette says.

We’ve helped thousands of members remain covered during tough times, so you can rest assured knowing your healthcare needs are still taken care of.

Find out more about our Involuntary Unemployment Assistance.

Suspend your health cover

You might have the option to suspend your cover for a short time – for example, if you’re going overseas for 30 days or more.

We recommend you seek advice before you suspend your cover, as it may have some implications at tax time. Depending on what you earn, if you choose a suspension, you may have to pay the Medicare Levy Surcharge for the period in the financial year that you didn’t have hospital cover.

“Members experiencing financial hardship, due to unemployment or illness, may also be eligible to pause their membership, with each case assessed individually,” explains Bernadette.

Before making this decision, talk with your accountant or the Australian Tax Office, and discover your options for suspending your cover. Subject to certain criteria, if you choose to suspend rather than cancel your cover, you won’t need to re-serve waiting periods when you resume your HCF cover.

To understand more about which option is right for your circumstances, please get in touch.

Get value from your cover

It’s worth taking a moment to make sure you’re getting good value from your cover. By being proactive with your health, you’re potentially avoiding issues that could cost you down the track.

Depending on your level of extras cover, eligible members can get 100% back^# on your favourite extras with our participating providers like dental check-ups, selected prescription glasses, hearing aids and a first visit to a physio, osteo, chiro or podiatrist.

From annual health checks to mental wellbeing support, we offer many health programs designed to help you stay healthy and in charge of your health. Explore options like the HealthyMinds Check-in^**, HCF Heart and Diabetes Health Check delivered by Victor Chang^{^^} and more – all available at no extra cost for eligible members.

You can use our Find a Provider tool to locate participating doctors, dentists and physios, and reduce your out-of-pocket costs for medical treatment. Our Cost Indicator tool helps you get an idea of the average cost of common hospital procedures.

HCF Thank You, our reward and recognition program, gives you access to a range of exclusive offers, discounted e-Gift cards and benefits designed to recognise your loyalty and say thank you for choosing us⁺⁺. You can save an average of $900^## a year through discounts on everyday essentials like e-Gift cards for groceries, fuel and entertainment.

Get in touch

Our members are at the heart of everything we do, so if you're experiencing financial hardship, don’t hesitate to contact us and we can talk through your options. Here’s how:

• Chat with us.
• Call 13 13 34 and speak to our team.
• Apply for financial help through the HCF My Membership app.