Essential Guide to Health Insurance for Living in Australia

One of the most important things to consider once you've made the decision to live in Australia is health insurance. Let’s be honest—medical services in Australia can be incredibly expensive for foreigners if you don’t have the right medical cover.

By Nayarai Sanchez

Health Care Costs in Australia

The estimated cost for an overnight stay in a hospital ranges from AUD$535 to AUD$1,080, excluding medical care. When you add medical care, the cost can be between AUD$3,300 and AUD$6,400.

There have been news reports of foreign visitors needing to use Australian healthcare services and having to pay up to AUD$80,000 for 30 days in hospital because they didn’t have insurance coverage.

While having health insurance doesn’t guarantee that you won’t have to pay anything out of pocket, it does provide significant financial protection, ensuring you won’t face overwhelming expenses. It is highly recommended to have the right health cover, especially because no one is exempt from unforeseen circumstances.

Types of Health Insurance in Australia

There are three main types of insurance available to foreigners in Australia. It’s important to choose the one that best fits your needs and finances.

1. Overseas Visitor Health Cover (OVHC)

Who it’s for: Tourists and temporary visitors (e.g., visa subclass 417, 408, bridging visa holders, skilled workers…).
What it offers: It covers the hospital, GP visits, and other medical procedures.
Duration: Can be purchased for short or long stays, depending on your needs.
Cost: Ranging from AUD$150 to AUD$600 monthly
Payment: Paid monthly.

2. Overseas Student Health Cover (OSHC)

Who it’s for: International students studying in Australia. It is a mandatory health insurance for international students and their dependents applying for a student visa.
What it offers: It meets the Australian government’s requirements and covers essential health services (hospital, GP, and other medical procedures).
Duration: Coverage must span the length of your visa, not just your course duration.
Payment: Must be paid upfront before applying for the student visa.
Cost: Ranging from AUD$400 to AUD$8,000, depending on the duration of your studies and whether you have any dependents included in your student visa.

Bridging Visa Consideration: If you are applying for a student visa and will be on a bridging visa but did not previously hold a student visa, OSHC does not cover you until your student visa is granted. You’ll need to consider purchasing OVHC in the meantime.

3. Medicare (for eligible visitors)

If you hold a European Health Insurance Card or are from a country with a Reciprocal Health Care Agreement (RHCA) with Australia, you may be eligible to apply for Medicare. Medicare guarantees access to a wide range of healthcare services at low or no cost for Australians and some overseas visitors.

Countries with Reciprocal Health Care Agreements with Australia: