Thousands of young Australians have taken out private health insurance in the last quarter, as insurers report an increase in people seeking mental health support.
New data from Australian Prudential Regulation Authority show some 14,723 people aged between 25 and 29 took out health insurance between June 30 to September 30, the largest increase in coverage during that quarter.
Overall, there was an increase in coverage of 105,601 across all age groups during the same time period, with 45% of the population covered by hospital treatment cover. Family policies increased by 14,578 and single policies by 25,325.
A total of 15 million Australians now have some form of health insurance – 55% of the population.
Chief executive of Private Healthcare Australia Dr Rachel David said younger people tended to use private health insurance for dental care, mental health treatment, drug and alcohol treatment, and maternity care.
“Our data shows young people get a lot of value out of having health insurance, particularly for mental health treatment,” she said.
“We’ve seen a dramatic increase in the number of young people accessing mental health treatment since the pandemic began.”
Dr David said the data suggests younger people are prioritising their health, despite current cost of living pressures.
Latest data from the Chief Psychiatrist of Western Australia suggests there was an increase in the number of patients utilising public community and inpatient services, private psychiatric hospitals and emergency departments in 2023.
In WA there are four private hospitals providing mental health services and three publicly contracted private providers that admit some private patients. According to the Chief Psychiatrists annual report 2024 there were 2,657 inpatients treated privately in 2024.
Overall, some 63,340 people received public sector specialist inpatient or community mental health care in 2023, with the majority (67.5%) aged between 18 and 64.
The demand for private health insurance has continued to grow in 2024, with more than 300,000 Australian’s taking out hospital cover in the year to September 30.
Dr David said this was good news for the health system, as increasing access to private health often translated to decreased pressure on the public health system.
“Normally this growth is primarily driven by older people with more health needs,” she said.
“But this year, we’ve seen a 5% jump in people aged in their 20s taking out hospital cover. This suggests young people are prioritising their health despite the cost-of-living crisis.
“Overall, this data is great news for our mixed public private health system. We know an increasing number of Australians value rapid access to private hospital treatment with a doctor of their choice if they need it, as well as subsidised dental, optical and other health services such as physiotherapy.
“This takes pressure off our public hospital system, so it’s there for people who need it most.”