Employer-funded private health insurance has moved ahead of flexible working arrangements as the workplace benefit Australians most want from their employers, according to new research from Members Health Fund Alliance cited by News.com.au. An independent Ipsos survey commissioned by the alliance found that one in two Australians would choose employer-covered health insurance over remote work if given the option. The survey also recorded that 56% of respondents had postponed dental, optical, or medical care because they could not afford it – a figure that points to a widening disconnect between healthcare need and healthcare access across the country.
Demand for employer-covered health insurance was recorded across all jurisdictions, though the levels differed by region. New South Wales came in at 59%, Victoria at 57%, and Queensland at 54%. The Northern Territory recorded the widest margin at 75%, the highest of any jurisdiction in the survey. The Victorian number lands against a contentious policy backdrop. The Allan government is working to legislate a statutory right for workers to work from home two days per week from Sept. 1, 2026, ahead of the state’s November election. Premier Jacinta Allan has positioned the bill as a measure that would reduce financial and logistical pressure on working families, though employer groups have opposed it. In Victoria, 57% of workers said they would prefer employer-provided health insurance, compared with 38% who prioritized flexible working arrangements.
The pattern of deferred healthcare was sharpest among younger age groups. Seven in 10 Australians between 18 and 34 reported delaying routine appointments by as long as two years, with dental visits the most frequently skipped. Respondents also identified prescription medication costs, access to bulk-billed GP appointments, elective surgery, and public emergency department congestion as ongoing concerns. Among those without general treatment cover, three in four said they would have sought care had insurance absorbed some or all of the cost.
Members Health Fund Alliance spokeswoman Laura Hicks connected the trend of deferred care to downstream risks for both individuals and the public health system. “The reality is that everyday living expenses are forcing many people to neglect their healthcare needs by putting off important healthcare check-ups. And that’s not in the national interest. Delaying a GP visit or a dental check-up might feel like a necessary saving in the short term, but it may lead to more complex, painful, and costly health issues in the long term and puts more pressure on the healthcare system,” Hicks said, as reported by News.com.au.
On the question of younger Australians, Hicks drew a connection between coverage and the likelihood of seeking treatment. “This particularly rings true with younger Australians who told us they were more likely to prioritise their health if they had insurance that covered all or at least a proportion of the cost. At the same time, our research shows growing public support for employers to step in and help, with many Australians backing workplace health cover as a practical solution to rising medical expenses,” Hicks said. The survey also found that 95% of respondents said private health insurers should place member interests ahead of financial returns.
Data published by the Australian Prudential Regulation Authority (APRA) for the three months to March 31, 2026, offers a broader view of the private health insurance market. Hospital treatment cover was held by 12,790,111 people – 45.8% of the population – as of the end of the quarter, up roughly 102,000 from December 2025. General treatment cover stood at 55.5% of the population, with the 12-month net increase coming to approximately 333,000 people.
The membership growth occurred as individual costs moved higher. The average out-of-pocket payment for a hospital episode came to $511.02 during the March quarter, a rise of 8.9% from the same period a year earlier. Average annual hospital benefits per person increased from $1,514.81 to $1,587.08 over the same 12-month comparison – a trend that runs parallel to the affordability pressures the Members Health Fund Alliance survey identified among those who had put off treatment. Insurer profitability declined over the period. After-tax profit for the sector came to $210 million for the March 2026 quarter, down from $417 million in December 2025. The number of registered private health insurers fell to 28, from 29 in the September 2025 quarter.
