How Much Do Australians Really Pay for Health Insurance? We Compared It to the US, UK and Canada

Australians love to complain about the cost of health insurance – and with premiums rising by an average of 4.41 per cent from April this year, the biggest hike in almost a decade, it’s easy to see why. But how does what we pay compare against other major countries? The answer might change how you feel about your own policy.

The United States: sticker shock, even with insurance

The US remains the cautionary tale of global healthcare. Employer-sponsored family health cover in the US regularly runs into the tens of thousands of US dollars a year in total premium costs (split between employer and employee), and that’s before factoring in deductibles, co-pays and the very real possibility of being hit with a surprise bill after treatment. For those without employer cover, buying a private plan directly can be even more expensive, particularly for older Americans in their 60s who aren’t yet eligible for Medicare (which in the US doesn’t begin until age 65). Despite spending far more on healthcare than any other wealthy nation, research shows Americans also tend to live shorter lives on average and face more barriers to accessing care in the first place.

The United Kingdom: “free” healthcare, hidden costs

The UK’s National Health Service (NHS) is funded through general taxation, so there’s no direct monthly premium in the way Australians experience it. But “free at the point of use” doesn’t mean free of frustration – long public waiting lists have pushed a growing number of Britons toward private health insurance as a top-up, with typical premiums running from several hundred to a few thousand pounds a year, depending on age and cover level. Notably, private insurance makes up a much smaller share of total health spending in the UK than it does in Australia.

Canada: lower premiums, but limited scope

Canada’s public system covers hospital and physician services for all residents, funded through taxes rather than premiums. Private supplementary insurance (covering things like dental, prescription drugs and vision, which the public system doesn’t include) typically costs individuals somewhere between $75 and $200 a month, rising for older applicants and more comprehensive plans. It’s a genuinely different model to Australia’s – Canadians aren’t paying to access a hospital bed, but they are paying for many of the “extras” Australians bundle into a single combined policy.

Australia: a genuinely competitive middle ground

By comparison, Australia sits in an unusual position: a strong public Medicare system covering hospital treatment and subsidised medical care for everyone, with private health insurance layered on top as an optional (though heavily encouraged) extra for those who want to avoid public hospital waiting lists, choose their own specialist, or access extras like dental and physio. The average premium increase for 2026 works out to roughly $167 extra a year for an individual on a gold hospital policy, and around $330 for a family – a noticeable rise, but nowhere near the scale of American premium costs. Around 64 per cent of Australians rate their healthcare as “good” or “very good,” well above the global average of 43 per cent across 30 countries surveyed by Ipsos in 2025.

What this actually means for you

None of this is to say Australians shouldn’t feel the pinch of rising premiums – cost-of-living pressure is real, and every dollar matters. But context is useful: compared to the eye-watering costs faced by Americans, or the tax-funded but increasingly strained systems in the UK and Canada, Australia’s blended public-private model is, by most measures, good value for what it delivers.

That said, “good value in theory” doesn’t mean your specific policy is good value for you. With premiums rising and insurers adjusting products every year, it’s worth checking whether you’re actually getting the best deal available for your circumstances, rather than assuming your current fund is still competitive.

Curious whether you’re paying more than you need to? Compare your health insurance today to see if a better deal is available for your circumstances.