Cheapest health insurance for pregnancy and birth

Do you need health insurance to have a baby? We compare public versus private care, and reveal the best policies.

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Pregnancy and childbirth can be full of surprises. But you can have control over what type of care you receive during your pregnancy.

The decision about how and where you want to give birth, and if you want to go private or public, is very personal. We help you weigh up your options by looking at the pros, cons and costs of going public vs private. If you already know you want to go private, jump straight to our expert picks for the cheapest health insurance for pregnancy and birth.

Public vs private care for pregnancy and birth

In Australia, doctors in private and public hospitals alike provide high-quality care for pregnancy and birth. The main advantage of going private is that you can choose the obstetrician who cares for you during your pregnancy and attends the birth.

However, this may not be the best option for you if you prefer a ‘natural birth’. The statistics are pretty clear on this: there are more natural births (non-instrumental vaginal births with or without pain relief) in public hospitals and more caesareans in private hospitals.

Public hospital Private hospital Vaginal birth 52% 35% Caesarean 36% 52% Vacuum suction 6% 9% Forceps 5% 4%

Source: AIHW data for 2022

CHOICE tip: It’s important to choose the right obstetrician for the type of care you want. Ask about their rate of interventions, particularly caesareans.

Public hospital vs private hospital

Giving birth in a public hospital as a public patient

Pros

Lower rate of interventions and higher rate of natural births.
Only very small, if any, out-of-pocket costs.
Usually better facilities if you have a high-risk pregnancy or a sick or premature baby.
Some hospitals have birth centres or midwife programs where you can get more personalised care with your own midwife. Book in early as these programs are very popular.

Cons

You often don’t know the doctor and midwives attending your birth and may see a different doctor/midwife each time.
Food and facilities may not be as nice as in a private hospital.
You often have to share a room with other mothers and their babies.
You may be cared for by junior doctors, who will call in a specialist when needed.

Giving birth in a private hospital as a private patient

Pros

Continuity of care with your own obstetrician and their midwives during your pregnancy.
Food and facilities may be nicer than in a public hospital.
Better chance of getting a private room and your partner may be able to stay with you.

Cons

Higher rate of interventions and lower rates of natural births.
High out-of-pocket-costs.
Your obstetrician may be on leave or may not make it in time for the birth.
You usually won’t know the midwives who attend your birth and provide postnatal care.
If your baby or you need intensive care, you may need to be transferred to a public hospital.
Doctors and anaesthetists are often not on-site so have to be called in.

CHOICE tip: Some public hospitals may encourage you to use your private hospital cover as a public patient without any cost to you – while there is no difference in your medical care, you may have a better chance of getting a private room.

https://infogram.com/public-vs-private-hospital-1h7v4pddxleej4k?live

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In 2022, about 293,400 people gave birth in Australia; the vast majority – 97% – in a hospital.
Of those who birthed in hospital, here’s a breakdown of where they birthed:
74% in a public hospital
26% in a private hospital.

Source: AIHW

How much does it cost to give birth?

Public patient

If you go to a public hospital as a public patient, you’d normally be fully covered by Medicare. But out-of-pocket costs could arise for:

shared care with a GP who doesn’t bulk bill
scans or pathology outside of hospital
childbirth classes.

Private patient

Even if you have private health insurance, large and sometimes unexpected out-of-pocket costs can arise for private care. Health funds are not allowed to cover out-of-hospital care. Therefore, each time you visit your obstetrician, you may have out-of-pocket costs.

The amount depends on if and how much they charge above the Medicare Benefits Schedule (MBS) fee. The largest cost may be the pregnancy management fee – you’ll pay out-of-pocket costs between $1400 and $4000, with the highest costs in NSW and the ACT.

Out-of-pocket costs as a private patient with health insurance for birth usually range between $400 and $500, plus your excess for the hospital accommodation.

Ways to cut down costs

Check with your health fund to find an obstetrician who uses the fund’s gap scheme for the birth and would be able to attend to you in a hospital that has an agreement with your health fund.
Use shared care with a GP who bulk bills.
Ask your obstetrician to detail all costs beforehand.
Consider being a private patient in a public hospital. It’s less likely that you’ll have unexpected out-of-pocket costs for blood tests, X-rays, ultrasounds, and the anaesthetist and paediatrician.
Check with your health insurer how soon you need to upgrade to family cover so that your baby is covered.
Once you’re pregnant, check whether you’ve served the waiting period. If you give birth before the waiting period is up, consider going to a public hospital as a public patient.

Cheapest policies with cover for pregnancy, birth and assisted reproduction

Exclusively for CHOICE members, we’ve listed the cheapest policies in each state that cover pregnancy, birth and assisted reproduction.

Things to keep in mind

Take out private health insurance well ahead of getting pregnant. There is a 12-month waiting period that applies to the date you’re admitted to hospital for the birth.
You won’t be covered if you have a premature birth within the waiting period or even if you give birth only a few days before the end of the waiting period.
Initially, only the person giving birth needs pregnancy cover. Once you’re pregnant, check with your health insurer how soon you need to upgrade to family cover so that your baby is covered.
Check with your obstetrician and the private hospital or fertility clinic whether they have a no gap agreement with your health insurer. If they only have an agreement with another insurer, you can switch before giving birth without serving a waiting period for pregnancy, birth and assisted reproduction.

Cheapest policy by state

Below, we reveal the cheapest policies. Log in to unlock this members-only content, or join CHOICE to get instant access to all of our expert, independent reviews.

All premiums are for a single person with a maximum of $750 excess (families and couples pay about double). These prices don’t take into account the health insurance rebate. If you earn less than $97,000 (or $194,000 for couples, families and single parents), you may be eligible for a rebate of about 24%.

Uta

I've been at CHOICE for over 20 years, starting as a research assistant and nowadays a senior content producer in the money and travel team. I am originally from Germany and my background is in journalism; I started in my teens at my local paper and then studied journalism in Germany and Australia. I hold a Master in History and Politics from the Technical University of Berlin, a Graduate Certificate in Journalism from UTS and a Certificate IV in Financial Advising from the Securities Institute in Sydney. Over the years I have worked on all types of financial topics – from credit cards to reverse mortgages and kids bank accounts. My main interest and expertise is in health insurance and I am member of the government health insurance website reference group of the Commonwealth Ombudsman. I love working at CHOICE because I feel that we can make a real difference helping consumers to get a fair go. You can find me on Twitter and LinkedIn.