Studying in Australia is a dream for many international students, but turning that dream into reality requires meeting specific Student Visa (Subclass 500) requirements. The most critical of these is OSHC (Overseas Student Health Cover).

If you are heading to Australia in 2026, simply picking the first insurance policy you see isn't enough. You need a plan that protects your wallet (budget-friendly) while ensuring you aren't left stranded during a medical emergency. This comprehensive guide breaks down what OSHC is, how much it costs, and how you can secure the best deal through Budget Policy.

What is OSHC and Why is it Mandatory? (Visa Condition 8501)

OSHC is a compulsory health insurance designed to help international students meet the costs of medical and hospital care while studying in Australia. According to the Australian Government’s Visa Condition 8501, you must maintain valid OSHC for the entire duration of your stay.

Why is it essential?

1. Visa Approval: Without valid OSHC, your visa application will be rejected immediately.
2. Medical Costs: Healthcare in Australia is world-class but incredibly expensive for non-residents. A single night in a hospital can exceed $1,500 AUD. OSHC covers these high costs.
3. Peace of Mind: Navigating a new country is stressful enough; OSHC ensures that a sudden illness doesn't lead to financial ruin.
   
   

What Does OSHC Cover? (Standard Benefits Explained)

As outlined by the Australian Department of Health, every OSHC provider must offer a minimum "Benchmark" level of cover:

1. Doctor (GP) Visits: If you have a fever or need a check-up, OSHC covers 100% of the Medicare Benefits Schedule (MBS) fee for General Practitioner consultations.
2. Hospital Treatment: Costs for being treated in a shared ward in a public or private hospital.
3. Emergency Ambulance: In Australia, ambulance transport can cost over $1,000 AUD per trip. OSHC usually covers this in full.
4. Prescription Medicines: Limited cover for medicines listed on the Pharmaceutical Benefits Scheme (PBS), typically capped at $300–$500 per year.
5. Pathology & Radiology: Basic blood tests and X-rays required for diagnosis.
   
   

What is typically EXCLUDED?

• Dental care (dentists)
• Optical (glasses and contact lenses)
• Physiotherapy and Chiropractic services
  Note: To cover these, you must purchase an "Extras" policy separately.
  
  

Australia’s Top 6 OSHC Providers: Which One is Right for You?

There are only six government-approved providers in Australia. We have compared them to help you make an informed choice:

1. Allianz Care OSHC

Allianz Care is a global leader with one of the most extensive "Find a Doctor" networks in Australia. This means more clinics offer "Direct Billing," saving you from paying upfront.

• Best for: Families and students who prefer a seamless, cashless experience.

2. ahm OSHC (Powered by Medibank)

ahm is frequently the cheapest OSHC option for single students. Their digital-first approach makes managing claims quick and easy.

• Best for: Budget-conscious students looking for the lowest premiums.

3. nib OSHC

nib is famous for its highly-rated mobile app. If you want to manage your health cover entirely from your smartphone, nib is an excellent choice.

4. Bupa OSHC

Bupa operates numerous physical retail centres across major Australian cities. If you prefer speaking to someone face-to-face about your claims, Bupa is the way to go.

5. Medibank

Medibank is One of Australia’s most trusted brands. While their premiums can be slightly higher, their customer support and hospital networks are top-tier.

6. CBHS International

Often overlooked, CBHS provides very competitive pricing, particularly for couples and families who find other providers too expensive.

OSHC Cost Comparison 2026 (Estimates)

Cover Type	Estimated Annual Cost (AUD)	Top Budget Provider
Single Student	$590 – $750	ahm / CBHS
Couple (Spouse)	$3,200 – $5,500	ahm / Bupa
Family (Kids)	$5,500 – $11,000+	Allianz Care

Price Disclaimer: Insurance premiums fluctuate. For the most accurate, real-time rates, use the Budget Policy Comparison Tool.

5 Common OSHC Mistakes to Avoid

International students often make errors that can lead to visa cancellations or massive hospital bills: Common OSHC Mistakes to Avoid.

1. Gaps in Policy Dates: Your OSHC must start the day you land in Australia, not the day your classes begin.
2. Incorrect Visa Expiry: Your policy must cover you until your visa expires (usually two months after your course ends).
3. Accepting the University Default: Most universities partner with one provider and include the cost in your tuition offer. You are not obliged to take this. You can often save hundreds of dollars by choosing your own provider via Budget Policy.
4. Ignoring Waiting Periods: If you have a pre-existing condition (like asthma or diabetes), there is usually a 12-month waiting period before you can claim related costs.
5. Single vs Couple Cover: If your partner is joining you on a dependent visa, you must have a Couple policy. Two separate Single policies are not valid for a visa with a dependent.
   
   

How to Compare and Buy OSHC on Budget Policy.

We have simplified the comparison process into three easy steps:

1. Enter Your Details: Visit our site and input your visa type, arrival date, and course end date.
2. Instant Comparison: View live quotes from Allianz, ahm, nib, and others on a single screen.
3. Check Features: Filter by "Direct Billing" to see which clinics are closest to your specific university campus.
4. Secure Purchase: Pay via Credit Card or secure international bank transfer.
5. Instant Certificate: Receive your Certificate of Insurance in your inbox within minutes—ready to be uploaded to your visa application.
   
   

What is Direct Billing and Why Does it Matter?

Imagine you feel unwell and visit a local doctor.

• Without Direct Billing: You pay the $80 fee yourself, keep the receipt, and wait a week for the insurance company to reimburse you.
• With Direct Billing: You show your digital OSHC card, and the doctor bills the insurer directly. You walk out having paid $0 out of pocket.

Pro Tip: Allianz and Medibank currently hold the largest direct-billing networks in Australia.

 

Frequently Asked Questions (FAQs)

Q1. Can I switch OSHC providers after arriving in Australia?

Yes. You can switch at any time. Your old provider will refund the remaining balance of your premium (minus a small administrative fee).

Q2. Does OSHC cover pregnancy?

Yes, but there is a 12-month waiting period. You must have been in Australia on a valid OSHC policy for a year before pregnancy-related hospital costs are covered.

Q3. How do I pay for my OSHC?

At Budget Policy, we accept all major Credit Cards, Debit Cards, and secure platforms like Flywire for international transfers.

Q4. Do I need a physical insurance card?

No. A PDF certificate is all you need for your visa. Once you arrive, you can use the provider's mobile app as your digital ID card at medical clinics.

Conclusion: Making the Right Choice

OSHC is more than just a visa requirement; it is your safety net in a foreign country. If you are looking for the absolute cheapest option, ahm or CBHS are your best bets. However, if you value convenience and cashless medical visits, Allianz Care is often worth the small extra investment.

Don't overpay for your health cover. Visit BudgetPolicy.com today to compare plans and save up to 28% on your OSHC!

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