Hospital cover in South Australia: the price after the rebate, by age
The rebate grows with the age of the oldest person on the policy. For an Adelaide couple in their late sixties, that changes the sum.
The cheapest exempt cover costs less than the surcharge by
$405
Surcharge $2,300 against $1,895 of cover: see-u by HBF, Starter Hospital $750 Excess with Daily Co-Pay (Basic) (Basic, $750 excess), $197.62 a month before rebate.
| Income tested: $230,000 | Tier 1, 1.00 % |
| Surcharge without cover, you | $1,300 |
| Surcharge without cover, partner | $1,000 |
| Cheapest exempt policy, full premium | $2,371 |
| Rebate (20.098 %) | -$477 |
| Net cost of the policy | $1,895 |
| Income from which cover is cheaper | $110,500 |
Premiums: PrivateHealth.gov.au file of 2026-10-01, 454 open policies that avoid the surcharge for this cover type in South Australia. Premiums change on 1 April 2027.
Prepared by Radif Partners · How the figures are built · thresholds read on ato.gov.au, premiums from privatehealth.gov.au data · not tax advice
South Australia has the third lowest premiums for the cheapest hospital cover that avoids the Medicare levy surcharge, after the Northern Territory and Western Australia: $98.81 a month for one person and $197.62 for a couple before the rebate, in the PrivateHealth.gov.au file of 1 October 2026. What you pay after the rebate depends on two things, the income tier and the age of the oldest person covered. A couple on a combined $230,000 sits in family tier 1, where the rebate is 16.079 % if both are under 65, 20.098 % between 65 and 69 and 24.118 % from 70. On the cheapest couple policy that is $1,990, $1,895 or $1,799 a year, against a surcharge of $2,300 for the couple without cover. A bill before Parliament would remove the higher rates for older members from April 2027.
One couple, three ages
Take an Adelaide couple, one partner on $130,000 and the other on $100,000. Their combined income of $230,000 is over the family threshold of $210,000, so without hospital cover each of them pays the tier 1 rate on their own income. The table compares that with two policies: the cheapest exempt couple policy and the cheapest Silver Plus one, for three ages of the older partner.
| Older partner | Rebate | Surcharge without cover | Cheapest policy, net | Silver Plus, net |
|---|---|---|---|---|
| 40 | 16.079 % | $2,300 | $1,990 | $3,205 |
| 67 | 20.098 % | $2,300 | $1,895 | $3,052 |
| 72 | 24.118 % | $2,300 | $1,799 | $2,898 |
The surcharge column does not move with age: it is a tax on income, not on the policy. The net premium falls as the rebate rises. For this couple the cheapest policy costs less than the surcharge at every age. The Silver Plus policy, which covers far more, is dearer than the surcharge at 40 and still dearer at 72. A loading on either partner would add to every net figure, since the rebate is never paid on the loading.
What the 2027 proposal would cost your policy
Extra cost per year if the 2027 rebate change passes
$154
| Rebate today | $1,075 |
| Rebate under the proposal | $921 |
| Tier | Base tier |
| Per month | $12.80 |
Choice in South Australia
The file holds 455 open single policies and 454 couple policies that avoid the surcharge in the state, from 22 insurers. For one person, the three cheapest are close together: see-u by HBF at $98.81, ahm health insurance at $99.50 and GMHBA Limited at $102.00, all Basic tier. The median single policy, $187.46, is 1.9 times the cheapest. For couples the tiers line up like this:
| Tier | Cheapest from | Cheapest per month | Median per month | Policies |
|---|---|---|---|---|
| Basic | see-u by HBF | $197.62 | $217.60 | 22 |
| Basic Plus | HCi | $214.30 | $243.00 | 55 |
| Bronze | ahm health insurance | $247.60 | $278.10 | 23 |
| Bronze Plus | see-u by HBF | $244.72 | $307.15 | 94 |
| Silver | AIA Health Insurance Pty Ltd | $333.68 | $376.50 | 16 |
| Silver Plus | AIA Health Insurance Pty Ltd | $318.27 | $468.00 | 203 |
| Gold | Medibank Private Limited | $486.80 | $700.90 | 41 |
The excess limit on a couple policy
A couple or family policy avoids the surcharge if its excess is $1,500 or less for the policy; a single policy needs $750 or less. The cheapest South Australian couple policy has an excess of $750 per person and $1,500 per policy, inside the limit. A higher excess lowers the premium but takes the policy out of the surcharge exemption, so a couple who picks a $2,000 excess to save money would pay both the premium and the surcharge. Our premium file leaves out every policy above the limits for that reason, and the excess page explains the rule.
Gaps in the year count too. If the couple only takes out cover in January, each partner still owes the surcharge for the days from 1 July without it. The part-year page computes that share.
Single parents
A single parent is tested against the family threshold with their own income only, $210,000 with one child and $211,500 with two. Many single parents are therefore under the threshold and owe no surcharge at all. Above it, the cheapest exempt single parent policy in South Australia costs $153.00 a month before the rebate. The single parents page has the detail.
Sources: PrivateHealth.gov.au file of 1 October 2026 (data.gov.au), rebate rates on ato.gov.au, the bill before Parliament. Naming a policy reports a price, not a recommendation. How the figures are built.