8 November 2024 - Australian families could save thousands of dollars annually on their private health insurance through a little-known policy change that allows adult children to remain on their parent's health insurance until age 31, Compare Club reveals today.
While the federal government legislated these changes in 2021, many health insurance providers have kept quiet about this money-saving opportunity, leaving millions of eligible Australians unaware they could save $1737.84* on average per year on their health coverage.
"With the cost of living continuing to squeeze Australian households, this is a golden opportunity for families to save money while ensuring their adult children maintain quality health coverage," says Kate Browne, Compare Club's Head of Research. "What's particularly valuable is that 'kidults' don't even need to live with their parents or even in the same state to be eligible – as long as they're not married, in a de facto relationship, or have children of their own."
Compare Club's analysis reveals substantial savings increase with each eligible child:
First child: $1,010 annual savings
Second child: $3,812 annual savings
Third child: $5,604 annual savings
Fourth child: Up to $7,000 annual savings
The research shows individual health plans are typically 48% to 161% more expensive than a family plan, with monthly differences ranging from $36 to $109 ($432-$1,308 annually).
“It is also important to note that singles health insurance taken out by those under 31 is typically granted with a youth discount of up to 10% of their premium. Even with this discount, people under 31 are still better off on a family plan,” says Browne.
"This extension of coverage is beneficial for young adults requiring mental health support and psychology services, which can be prohibitively expensive on individual plans," Browne adds. "By staying on their parent's policy, young Australians can access higher levels of cover they might not otherwise be able to afford."
The policy change is especially relevant given that 47% of Australians aged 20-24 and 18.5% of those aged 25-29 still live at home, totalling over 1 million young adults who could benefit from these savings.
Key Eligibility Requirements:
Must be under 31 years old
Cannot be married or in a de facto relationship
Cannot have children of their own
Can live anywhere in Australia
Provider | Extension on Family Plan difference | Individual Plan | Average Difference |
Medibank | $49.57 - $147.79 | $78.00 - $218.25 | $49.45 |
Bupa | $42.00 - $142.00 | $70.12 - $230.56 | $58.34 |
ahm | $39.70 - $115.80 | $82.05 - $247.40 | $86.98 |
HCF | $50.96 - $128.77 | $91.11 - $245.62 | $78.50 |
Australian Unity | $45.65 - $120.40 | $79.16 - $240.87 | $76.99 |
nib | $31.91 - $162.00 | $83.36 - $332.74 | $111.10 |
CBHS | $53.08 - $128.02 | $80.07 - $192.03 | $45.50 |
- ENDS-
NOTES
*A family of four with two over 21 dependents.
For media enquiries:
Jasmine Kostas
Media + Capital Partners
0425 327 224
jasmine.kostas@mcpartners.com.au
About Compare Club
Compare Club is one of Australia’s fastest-growing personal finance marketplaces. It helps Australians save money by navigating complicated and important financial decisions. Compare Club’s panel of experts offers bespoke advice to over 3.6 million members making 1 million product enquiries per year on key financial decisions, including health insurance, electricity and gas bills, and personal, car, and home loans. Compare Club is locally owned and employs 350 passionate staff across Sydney, Melbourne, and Brisbane and another 50 staff in Indonesia and the Philippines.
