The benefits of private health insurance for young people
Published October 2026
Reviewed by Patricia Kennedy-Smythe
From mental health support to tax savings, there are plenty of benefits of private health insurance for young people. Here’s why it’s worth considering.
If you're in your 20s or 30s, you might be weighing up whether private health cover is worth the extra expense. Or maybe you're a parent wondering if your adult child needs their own policy. Either way, there are some real benefits of private health insurance for young people. Here's what makes private health insurance for young adults worth considering.
Lock in lower premiums
Getting health cover while you’re young actually saves you money down the track. If you don't have hospital cover by 1 July after your 31st birthday, you'll end up paying more for it later.
This is called Lifetime Health Cover (LHC) loading and it works like this: for every year past 31 you don't have hospital cover, you'll pay a 2% loading on top of your premium. So if you first take out cover at 40, you’d pay an extra 20% on your health cover. At 45, it’s 30% – capped at a maximum of 70%. The loading stays on your policy for 10 continuous years, then it’s removed.
Remember: extras-only cover doesn’t count, you need hospital cover to avoid LHC.
The good news for RT Health members is that adult kids can stay on the family policy right up until their 31st birthday – whether they're studying full-time (at no extra cost) or working (for an additional premium that's still less than the cost of an equivalent single person policy).
Save at tax time
If you earn above a certain income and don’t have private hospital cover, you may need to pay the Medicare Levy Surcharge (MLS) – an additional tax on top of the standard 2% Medicare Levy.
For FY 2026–27, the MLS threshold is $105,000 for singles and $210,000 for families. If you earn above the threshold without hospital cover, you'll pay a surcharge of between 1% and 1.5% (depending on your income).
Like LHC loading, the only way to avoid the MLS is with private hospital cover – extras-only policies don't count. Depending on your income and the cover you choose, private hospital cover may cost less than paying the Medicare Levy Surcharge.
Faster treatment for accidents, injuries and illnesses
Accidents can happen at any age – whether it's a torn ligament from playing sport, a broken bone on a weekend camping trip or a workplace injury. Maybe you’ll need to go to hospital for your wisdom teeth removal or a chronic condition like endometriosis.
With private hospital cover, you can get faster access to the care you need. Between 2024 and 2025, private patients waited 28 days for common hospital procedures, compared to 53 days for public patients. And if you're recovering from surgery or an injury, extras cover can help reduce the out-of-pocket costs of services like physio and remedial massage.
Get more choice in your care
One of the real advantages of private health insurance for young adults is that you get a say in your own care. With hospital cover, you may be able to choose your own specialist and, in many cases, your preferred hospital.
RT Health’s Find a Doctor tool makes it easy to search for participating providers near you, so you can make confident decisions about who’s looking after you.
Mental health support
Looking after your mental health is just as important as your physical health – and the right cover can help with that, too.
RT Health members with eligible extras can claim for online cognitive behavioural therapy (CBT) courses delivered by THIS WAY UP*, an evidence-based digital mental health service developed by psychiatrists and clinical psychologists. The programs can help you manage depression, anxiety, panic and more, and you can access them from home, at a time that suits you.
Depending on your level of cover, you may also be able to access benefits for psychology services under your annual limit. Check your RT Health Cover Guide to see what's included in your cover.
Care during pregnancy and birth
Starting a family requires careful planning. If you want access to a private hospital to have your baby, it’s worth thinking about that sooner rather than later.
RT Health's Gold Optimal Hospital cover includes pregnancy, birth and assisted reproductive services (IVF) for fertility and maternity care. A 12-month waiting period applies to these services, so you'll need to have the right cover before you or your partner becomes pregnant.
Support your overall wellbeing
Pairing hospital cover with extras cover means you've also got support for the everyday services that help you stay on top of your health.
Extras cover can help support your wellbeing with things like:
- dental check-ups and treatments
- physio and remedial massage
- optical, including prescription glasses and contact lenses
- mental health support
- chiro, osteo and other allied health services.
Extras cover can also help you save on out-of-pocket costs. For example, RT Health members get 100% back^ on a range of no-gap preventative dental services – including check-ups, cleans, X-rays, fluoride treatments and mouthguards – through our More for Teeth program.
Need help finding the right health cover?
We’re here to help you make sense of it all. Give us a call on 1300 886 123 or get in touch at help@rthealth.com.au and our Member Care team will walk you through your choices.
Important information
* THIS WAY UP is available to RT Health members with Deluxe Extras, Top Extras and Smart Extras cover, up to their annual limit of $120 per person, paid under Psychology benefits. The benefit payable will depend on the program you choose.
^ 100% back/no-gap at More for Teeth providers is available to members with RT Health extras cover. Waiting periods and annual limits apply. Providers are subject to change. We recommend that you confirm your chosen provider is part of More for Teeth prior to your appointment.