Healthcare and insurance costs

24 Sep 2025

Planning ahead for medical expenses

Healthcare is something most Australians rely on at different stages of life, but as we age, the likelihood of ongoing medical needs increases. While Medicare provides an essential safety net, you may find themselves facing out-of-pocket expenses for specialist appointments, hospital stays, medications and allied health services such as physiotherapy or podiatry. Planning ahead for these costs can reduce stress and help you maintain peace of mind.

Understanding your options

Medicare covers a wide range of services, yet gaps remain. For example, some doctors charge above the Medicare rebate, leaving you to pay the difference. Private health insurance can help, particularly if you require elective surgery, want a choice of doctors, or need extras such as dental, optical or hearing aids. However, premiums often rise with age, making it important to regularly review your cover and ensure you are not paying for services you no longer need.

Budgeting for healthcare

It can be useful to treat healthcare as a fixed expense in your household budget, just like utilities or groceries. Setting aside funds each month for medical costs – whether in a dedicated account or simply as part of your savings plan – means you’ll be prepared for unexpected bills. For those on a pension or fixed income, concessions such as the Commonwealth Seniors Health Card or Pensioner Concession Card can significantly reduce prescription and service costs.

Planning for long-term needs

As life expectancy increases, so too does the need for aged care services. While many prefer to remain at home with support, others may eventually require residential aged care. These services often involve accommodation deposits, daily fees or means-tested contributions. Becoming familiar with the government’s My Aged Care system can help you understand entitlements and likely costs, so you and your family are not caught off guard.

Seeking advice

If navigating policies and rebates feels overwhelming, consider speaking to a financial planner with experience in retirement healthcare planning. They can help balance the cost of insurance against savings, superannuation and government assistance.

Peace of mind through preparation

While no one likes to think about illness or injury, planning ahead ensures you can access the care you need without financial strain. Reviewing your insurance, setting a healthcare budget and understanding available support schemes are practical steps that safeguard both your wellbeing and your wallet.

Quick tips for managing healthcare costs

• Review your cover: Check your health insurance annually – make sure you’re paying only for services you use.

• Use concessions: Apply for cards such as the Commonwealth Seniors Health Card or Pensioner Concession Card to reduce costs.

• Shop around: Compare specialists’ fees – some bulk bill or charge lower out-of-pocket costs.

• Plan for medications: Ask about generic alternatives and take advantage of the PBS Safety Net.

• Prioritise prevention: Regular check-ups, vaccinations and healthy lifestyle habits can reduce long-term medical expenses.

A little planning today can mean big savings tomorrow.