A surgical termination can be claimed with most private health insurance policies (we advise you check with your provider) whereas medical terminations are not.
The reason the cost of a medical termination is so high for overseas visitors is that the Australian government heavily subsidies the cost for Australian residents. The cost of the tablets alone is roughly $355.
If a Medical Termination fails or is incomplete, a surgical termination may be required. This comes at an additional cost. The possibility of needing a second termination needs to be considered when weighing up the options between a medical and surgical abortion.