A new study reveals a generational gap in how young adults contribute to family health insurance, with Gen Z members the least likely to pay their share.
Nearly half of all Australian parents pay the entire cost of their family health insurance policy. They do not ask their adult children to help pay the bill. This is according to new research from Money.com.au.
The data shows a clear divide between generations. Gen Z adults, typically aged 18 to 27, are the most likely to have their parents cover the full cost. Twenty-nine percent of Gen Z members contribute nothing. This compares to 26 percent of Millennials.
Overall, only 22 percent of parents said their adult children pay their share in full. Forty-eight percent of parents cover the entire cost themselves. Another 30 percent said their children contribute only partially.
Adding these young adults to a policy is not free. It increases the average annual premium by about 25 percent. A standard family policy costs approximately $3,125 per year. With adult dependants included, that price jumps to around $3,910.
Chris Whitelaw, the General Manager of Health Insurance at Money.com.au, explained why many parents allow this. He said many young Australians stay on their parents’ cover well into their twenties.
“The alternative is that they would forfeit cover entirely,” Whitelaw said. “It can be cost-prohibitive for them to take out their own policy if they’re on a low income or just starting their career.”
Most health funds allow parents to add dependants aged 21 to 31 to their family policies. Students can often remain on a policy at no extra cost if they are unmarried.
The survey was commissioned by Money.com.au in July 2025. It was conducted by Pureprofile using a nationally representative sample of 1,000 Australians.
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