Rising dental costs prompt Australians to reconsider extras health insurance

24% of Australians would spend more on dental care if they could afford it.

Rising dental costs and increasing out-of-pocket expenses are prompting calls for Australians to reconsider the value of extras health insurance, as 24% of Australians would spend more on dental care if they could afford it, only 9% view extras health insurance as essential.

Research from Money.com.au further shows that the low uptake comes despite the potential for extras policies to cover routine services such as check-ups, cleans, and X-rays—expenses that can total hundreds of dollars each year.

Chris Whitelaw, general manager of Health Insurance at Money.com.au, noted that demand for dental services continues to rise, yet many consumers appear to underestimate the role of insurance in managing long-term costs.

He pointed to APRA data showing that dental service volumes increased 32% over four years to reach 53.6 million in 2024.

Over the same period, insurer payouts for dental benefits climbed 36% to $2.35b (A$3.62b).

At the same time, the cost gap between what insurers cover and what patients pay has widened.

The average cost of a dental service rose 5.3% from $78.65 (A$121) in 2020 to $82.55 (A$127) in 2024. Insurer benefits increased only 3.3%, from $42.56 (A$65.47) to $43.95 (A$67.61).

As a result, the average out-of-pocket expense per dental visit jumped 7.6%, from $36.11 (A$55.56) to $38.86 (A$59.79).

Generational data from the survey shows that Gen X are the most likely to say they want to spend more on dental care (26%), followed by Baby Boomers and Millennials (both at 23%) and Gen Z (21%).

The findings suggest continued pressure on households as dental inflation outpaces insurance reimbursements, reinforcing concerns about the long-term affordability of oral healthcare without adequate insurance coverage.