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The number of Australians with private hospital cover has risen by 287,393 people over the course of 2025, according to data from the Australian Prudential Regulation Authority, pushing total membership to 12.69 million.
The figures, drawn from APRA’s Private Health Insurance Annual Coverage Survey, show membership increased between December 2024 and December 2025 despite persistent household cost pressures, taking national coverage to its highest level on record.
The growth represents a continuation of a trend that has seen private health insurance membership climb steadily since a pandemic-era low in 2020, when total coverage dipped to about 11.34 million nationally.
Victoria leads state-by-state growth
Victoria recorded the largest absolute increase of any state, adding 77,061 insured residents to reach a total of 3,066,307 people with private hospital cover.
New South Wales was close behind, gaining 75,842 members to bring its total to 4,066,251 – the largest state-level membership base in the country.
Queensland added 55,537 new members, pushing its total to 2,384,736.
Among the smaller jurisdictions, South Australia grew by 19,314 to reach 873,053 insured residents, while the ACT added 5,856 to hit 264,904. Tasmania’s membership increased by 3,927 to 246,979, and the Northern Territory grew by 885 to 103,883.
Cost of living context
Sophie Ryan, a Comparison Expert at iSelect, pointed to the data as evidence that many households continue to prioritise health cover even while managing tighter budgets.
“Cost of living pressures remain a real challenge for many families, so it’s significant to see private health insurance membership continue to grow,” Ryan explained.
“These figures suggest Australians continue to see value in having private health cover, whether that’s for greater choice, flexibility or peace of mind when it comes to their healthcare.”
The growth comes against a backdrop of elevated living costs that have squeezed household discretionary spending across a range of categories. Insurance premiums themselves have risen in recent years, making the sustained membership growth a notable signal about consumer priorities.
A longer-term rebound
The APRA dataset reveals the scale of recovery since 2020. National membership fell from 11.31 million in December 2019 to 11.34 million in December 2020, before beginning a steady climb through 2021 and 2022.
By December 2023, the total had reached 12.09 million, and it passed 12.4 million in December 2024 before hitting the 12.69 million figure recorded at the end of 2025.
The trajectory represents an addition of roughly 1.35 million insured people over the past five years.
Reviewing cover remains important
Ryan urged policyholders not to set and forget their health insurance, noting that circumstances change and policies should be reviewed regularly.
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“While many households are maintaining their cover, it’s important to review your policy regularly to make sure you’re not paying for inclusions you don’t use or missing out on benefits that may better suit your circumstances,” she warned.
“Comparing policies remains one of the simplest ways Australians can check they’re getting the right level of cover at a competitive price.”
Tips for managing health insurance costs
There are several strategies available to consumers looking to manage their health insurance spending.
Reviewing a policy regularly is one of the simplest steps, given that health needs and financial circumstances shift over time. Policyholders should ask whether they are covered for what they actually need and whether they are paying for inclusions they no longer use.
Opting for a higher excess can also reduce premiums. If a hospital admission is unlikely in the near term, choosing a higher excess on eligible policies may lower the overall cost of cover.
Shopping around for incentives is another option. Some funds offer deals or introductory incentives at certain times of the year, though Ryan cautions that the cheapest deal is not always the right fit if the policy does not match a person’s needs.
Extras cover is another area worth scrutinising. There is wide variation between funds in the services offered and the rebates available. Some providers offer flexible products that combine separate extras limits into a single annual pool, which can be used across different services.
Consumers should also be aware of their rights when switching insurers. Hospital benefit waiting periods that have already been served are protected by law if a policyholder moves to an equivalent or lower level of hospital cover.
Last Updated on July 30, 2026 by Nick Ross
