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Dump these overpriced Silver Plus health insurance policies

Many Silver Plus hospital policies cost more than some Gold policies and provide less cover.

blue hospital bed
Uta Mihm
Mark Blades
Last updated: 20 March 2024
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Checked for accuracy by our qualified fact-checkers, verifiers and subject experts. Find out more about fact-checking at CHOICE.

Need to know

  • Silver Plus policies with restrictions can cost hundreds more per year than Gold policies with full cover
  • Health funds including Medibank, Bupa, HCF, HBF and NIB sell these overpriced policies
  •  Review your health insurance and switch to better value cover

With health insurance premiums set to increase on 1 April it's a good time to check if your health insurance policy is good value for money and that you have the right level of cover for your needs.  

The Gold, Silver and Bronze system of health insurance introduced by the government in 2019 ranks policies by cover, but there is no guarantee that a lower tier means a cheaper premium. 

We've found 170 Silver and Silver Plus policies that cost more than Gold policies from their competitors – while providing less cover.

You might be surprised how much you can save when you compare health insurance. For example, in Victoria a single person could save $1970 per year by switching from the most expensive to the cheapest Gold policy.

Silver Plus policies allow you to tailor your health insurance, giving you the level of cover provided by a Silver policy, plus cover for one or more procedures usually only covered by Gold insurance.

Silver and Silver Plus policies give you less cover than Gold, so you'd expect them to cost less. But we've found Silver Plus policies that cost a single person an annual extra amount of up to: 

  • $960 more in the ACT and NSW
  • $1200 more in Queensland and Victoria
  • $745 more in Western Australia
  • $1100 more in Tasmania
  • $1080 more in South Australia
  •  $975 more in the Northern Territory.
silver plus between gold and silver worded

Silver Plus policies give you the level of cover provided by a Silver policy, plus one or more procedures usually only covered at Gold level.

Why is Silver Plus often more expensive than Gold?

Unlike other types of insurance, like car insurance, you won't pay more for health insurance if you've had to make a claim in the past. However, health insurers price their policies based on the likelihood that their members will claim and how expensive those claims will be. 

While pregnancy and birth cost the insurer around $10,000, a hip replacement costs three times as much.

Younger people who are planning a family may be less likely to go to hospital for other treatments, whereas older people may need a range of hospital treatments. Therefore, policies that cover procedures such as hip and knee replacements but don't cover pregnancy can cost more than Gold policies that cover everything. 

This makes older people the perfect targets for overpriced Silver Plus policies.

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Stock images: Getty, unless otherwise stated.

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