The increasing cost of dental care in Australia is driving more people to explore extras health insurance as a way to manage expenses. Despite the rising costs, many are still hesitant to make the investment.
Growing Desire for Better Dental Care
New research from money.com.au shows that nearly 24% of Australians would spend more on dental care if they could afford it. However, only 9% consider extras health insurance essential, even though it could help reduce out-of-pocket expenses. Among different age groups, Gen X is the most likely to want to invest more in routine dental care, with 26% expressing interest. This is followed by 23% of Baby Boomers and Millennials, and 21% of Gen Z.
Rising Dental Costs and Demand for Services
Data from the Australian Prudential Regulation Authority (APRA) reveals that the average cost of a dental service rose by 5.3%, reaching A$127 ($82) in 2024, up from A$121 in 2020. The average dental gap has also increased to nearly A$60 per visit, compared to A$55 in 2020. Demand for dental services has risen by 32% since 2020, and insurers paid out A$3.62 billion in dental benefits in 2024, marking a 36% increase from previous years.
Health Insurance Can Help Manage Rising Costs
Chris Whitelaw, general manager of health insurance at money.com.au, pointed out that extras health insurance could assist Australians in managing the high cost of dental care. “A good extras policy can cover preventive check-ups, scale and cleanings, X-rays, and fluoride treatments, all of which can cost hundreds annually. Some high-tier policies also include major dental services like fillings, root canals, and even orthodontics,” he said. For regular dental visitors or families, extras cover can significantly reduce the financial burden of dental care.
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