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Health insurance premium rates 2023
On 1 April 2023, health insurance premium rates will go up by an average of 2.9% – on par with recent years, but you can still save hundreds by switching.
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What you need to know
The 2.9% health insurance premium increase is a bit higher than 2.7% in 2022, which was the lowest annual change in 21 years.
Some funds including Medibank, ahm, Bupa, HCF, hbf and nib are delaying the increase.
You can avoid the increase if you transfer to a fund that is delaying its price increase. You can also pay upfront for a year with some funds.
How much will my health insurance go up in 2023?
Health insurance will go up by an industry average of 2.9% on 1 April 2023. Some policies will see a price jump as big as 5.38%. Interestingly, one fund – Health Care Insurance – is actually decreasing its prices, albeit by just 0.09%.
As with last year, some health funds are delaying their price increases. In some cases, until 1 October 2023, which is 6 months later than usual.
If your provider is planning to significantly increase its premiums, now might be a good time to compare health insurance policies and switch to a more affordable one.
Who is delaying the health insurance premium increase?
HCF. Delayed until 1 September 23. Its prices increased 3.3%.
Bupa. Delaying until 1 October 2023. Its prices will increase 3.39%.
Medibank and ahm. Delayed until June 2023. Its prices increased 2.96%.
nib.Delaying until 1 October 2023. Its prices will increase 2.72%.
AIA.Delaying until 1 July 2023. Its prices increased 1.69%.
Average premium increases – how does your fund compare?
You can find out how much your provider plans to increase its premiums in the table below.
Health Fund
2023 increase
ACA
3.92%
AIA
1.69%
Australian Unity
3.76%
Bupa
3.39%
CBHS Corporate
5.38%
CBHS Health Fund
4.46%
Cessnock District Health Benefits Fund
3.93%
CUA
No data
Defence Health
3.48%
Doctors' Health
2.15%
GMHBA
2.33%
HBF Health
4.49%
Health Care Insurance
-0.09%
HIF
3.10%
Health Partners
2.93%
Hospitals Contribution Fund
3.33%
Latrobe Health
2.15%
Medibank (including ahm)
2.96%
Mildura District Hospital Fund
2.48%
National Health Benefits Australia
2.86%
Navy Health
2.94%
NIB
2.72%
Peoplecare
2.79%
Phoenix
3.72%
Police Health
0.00%
Queensland Country Health
3.17%
Queensland Teachers' Union Health
0.81%
Reserve Bank Health Society
3.18%
St Luke's
2.86%
Teachers Federation
2.50%
Transport Health
2.49%
Westfund
2.65%
How much should you be paying?
You may not realise it, but health insurance prices can really vary between tiers. For example, we found a difference of over $300 a year between two policies on the same tier. That's why it's important to compare your options.
To give you a benchmark to compare your current health insurance, here are the cheapest Basic, Bronze, Silver, Gold and Extras policies from each tier from Finder Partners. Switch and save on your health fund policy today.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
Compare prices from 30+ Aussie funds in under 30 seconds.
Why does the cost of health insurance go up every year?
Health insurance is community rated. This means everybody pays the same price for the same policy, regardless of their age, health or how likely they are to lodge a claim.
For example, a healthy 30-year-old would pay the same as a chronically unwell 60-year-old – as long as they both had the same policy. It means that even if you're sick, injured or have a history of illness, you're not further disadvantaged by having to pay more for your health insurance.
However, the number of seniors in Australia is increasing, and because over-65s typically have higher healthcare costs, insurance companies are spending more money paying out claims.
Unfortunately, insurance companies aren't earning enough money from premiums to be able to comfortably cover the cost of claims. As a result, they have to raise their prices.
How much does health insurance increase every year?
Health insurance premiums increase by a different rate every year. The table below shows the annual averages since 2014.
Average increase (%)
Insurer
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
ACA Health Benefits Fund Limited
5.78%
4.96%
6.19%
4.70%
2.72%
3.23%
3.94%
3.54%
2.59%
3.92%
AIA Health Insurance
No data
No data
No data
No data
3.90%
4.45%
5.63%
1.62%
2.80%
1.69%
Australian Unity Health Limited
6.62%
6.26%
5.05%
4.46%
3.89%
3.35%
2.79%
1.99%
2.73%
3.76%
BUPA HI Pty Ltd
6.35%
5.59%
5.69%
4.90%
3.99%
2.99%
3.26%
3.21%
3.18%
3.39%
CBHS Corporate Health Pty Ltd
No data
No data
No data
2.98%
2.38%
3.68%
2.37%
5.47%
5.33%
5.38%
CBHS Health Fund Limited
5.61%
6.58%
5.92%
3.29%
2.73%
3.67%
3.91%
4.26%
2.91%
4.46%
Cessnock District Health Benefits Fund Limited
5.36%
6.99%
6.19%
6.57%
6.40%
3.90%
3.96%
4.14%
3.77%
3.93%
CUA Health Limited
5.47%
6.35%
8.95%
4.97%
3.29%
4.19%
3.99%
2.99%
Defence Health Limited
5.34%
5.62%
5.48%
5.51%
5.97%
4.50%
3.49%
3.93%
3.33%
3.48%
Doctors' Health Fund Pty Ltd
4.23%
3.98%
3.76%
3.54%
2.28%
2.94%
3.29%
2.85%
2.28%
2.15%
GMHBA Limited
5.94%
6.43%
5.44%
4.94%
4.34%
3.31%
3.34%
3.24%
3.10%
2.33%
HBF Health Limited
3.72%
5.96%
4.94%
5.96%
3.75%
1.94%
1.98%
0.94%
3.62%
4.49%
Health Care Insurance Ltd
5.34%
6.12%
6.90%
6.06%
8.90%
5.53%
3.75%
2.91%
1.09%
-0.09%
Health Insurance Fund of Australia Limited
2.98%
4.49%
6.55%
7.99%
5.35%
4.77%
5.58%
3.78%
3.20%
3.10%
Health Partners Limited
3.14%
5.76%
7.14%
5.10%
3.95%
3.18%
2.77%
3.35%
3.15%
2.93%
health.com.au Pty Ltd
6.13%
6.81%
8.81%
8.53%
5.87%
3.96%
3.94%
0.83%
No data
No data
Hospitals Contribution Fund of Australia Ltd
6.89%
6.57%
5.42%
3.65%
3.39%
3.20%
3.39%
2.95%
2.72%
3.33%
Latrobe Health Services Limited
5.98%
6.15%
5.52%
4.49%
4.25%
3.85%
3.49%
3.42%
3.41%
2.15%
Medibank Private Limited
6.49%
6.59%
5.64%
4.60%
3.88%
3.30%
3.27%
3.25%
3.10%
2.96%
Mildura District Hospital Fund Ltd
3.65%
6.14%
6.74%
5.95%
5.68%
3.89%
4.68%
4.07%
2.90%
2.48%
National Health Benefits Australia Pty Ltd
4.50%
6.26%
5.28%
5.41%
3.97%
3.62%
2.99%
3.56%
3.24%
2.86%
Navy Health Ltd
4.53%
4.50%
5.50%
4.94%
3.94%
4.94%
3.49%
3.46%
3.25%
2.94%
NIB Health Funds Ltd
7.99%
6.55%
5.55%
4.48%
3.93%
3.38%
2.90%
4.36%
2.66%
2.72%
Nurses & Midwives Health Pty Ltd
No data
No data
No data
No data
3.22%
5.91%
3.74%
3.38%
No data
No data
Peoplecare Health Limited
5.82%
6.08%
4.38%
5.09%
4.19%
4.90%
3.48%
3.90%
3.27%
2.79%
Phoenix Health Fund Limited
6.52%
6.48%
5.72%
5.93%
4.19%
3.26%
3.10%
3.47%
3.16%
3.72%
Police Health Limited
4.81%
4.48%
4.81%
4.63%
3.72%
3.58%
3.14%
3.10%
1.79%
0.00%
Queensland Country Health Fund Ltd
5.85%
4.77%
4.91%
5.15%
4.39%
3.95%
3.56%
4.43%
3.34%
3.17%
Queensland Teachers' Union Health Fund Limited
4.50%
6.36%
7.15%
7.30%
4.40%
3.18%
2.66%
1.11%
2.26%
0.81%
Railway & Transport Health Fund Ltd
4.80%
6.17%
5.61%
5.54%
4.47%
3.36%
2.91%
3.19%
No data
No data
Reserve Bank Health Society Ltd
4.39%
4.88%
5.37%
5.00%
3.97%
3.73%
3.08%
3.74%
3.74%
3.18%
St Luke's Medical and Hospital Benefits Association
6.33%
6.27%
5.89%
4.99%
4.23%
3.56%
2.90%
0.5%
3.19%
2.86%
Teachers Federation Health Ltd
5.42%
6.86%
4.97%
4.96%
2.84%
3.94%
3.24%
2.88%
2.17%
2.50%
Transport Health Pty Ltd
5.90%
4.84%
6.49%
4.93%
5.16%
3.41%
2.59%
2.61%
1.16%
2.49%
Westfund Limited
3.25%
7.92%
5.94%
4.96%
3.43%
1.64%
4.32%
4.30%
2.40%
2.65%
Industry Weighted Average
6.20%
6.18%
5.59%
4.84%
3.95%
3.25%
2.92%
2.74%
2.70%
2.90%
How will I know if my premiums are increasing?
Your health fund won't increase the price of your policy without letting you know, so expect a letter or an email notifying you about any changes.
From there, it's worth checking the updated policy information, so you can make an informed decision about what to do next.
What should I do if the price of my health insurance is going up?
If you don't do anything, it's highly likely that the cost of your health insurance will go up on 1 April. However, you may be able to save money if you compare providers and switch to a policy that suits you better.
Here are some handy tips to consider, which could save you money:
Change tiers. Hospital cover comes in four tiers: basic, bronze, silver and gold. Dropping down a level could save you money, but you'll get fewer overall benefits.
Look for discounts. Young Australians can save up to 10% on their hospital insurance, so if you're between 18 and 29, be sure to ask your insurance company how they can help.
Compare policies. Finder's online tool lets you compare health insurance policies side by side, so you can see what benefits you're getting and for how much.
Switch and save. Don't pay for the benefits you're not using. If you can get the cover you need elsewhere, for a price you're happy to pay, consider switching health insurance policies. Remember, if you switch from one health fund to another, you won't have to serve your hospital waiting periods again. For your extras, contact the insurer directly to check.
Pay in advance. If you want to avoid this year's premium increase, pay in advance before 1 April and you'll still get your policy for last year's prices. Some insurers will also give you an additional discount if you set up a direct debit or pay for your policy in a lump sum.
Avoid tax. The Medicare levy surcharge is a tax of between 1% and 1.5% of your income. Anyone who earns over $90,000 and doesn't have an approved level of hospital cover has to pay it. However, if you take out hospital insurance, you won't have to pay it.
Avoid lifetime loading. Lifetime health cover loading is an extra levy that is applied to health insurance policies if you only take one out over the age of 31. It's designed to encourage young people to buy health insurance – if you don't, you'll end up paying more for your premiums down the line.
Why you can trust Finder's health insurance experts
We're free
Our health insurance engine is completely free to use. You pay the same as buying directly from the health insurer. Better still, we regularly run exclusive deals that you won't find on any other site.
Unlike other comparison sites, we're not owned by an insurer. That means our opinions are our own and you can compare nearly every health fund in Australia on the site (and find a better deal).
We're here to help
Since 2014, we've helped 350,000+ people find health insurance by explaining your options simply. We'll never ask for your number or email to see prices. We're here to help you make a decision.
Frequently asked questions
If you prepay your premiums, your rates will be locked in for the period you paid in advance, which could be as little as 2 weeks or as long as 18 months. We've written about how you can lock in 2021 prices until as late as 2024 here.
Yes, the cost of extras cover will also increase on 1 April. However, it's not yet clear exactly how much extras cover will increase. Some insurers have indicated that extras policies will increase at a slower rate than hospital cover.
Insurance companies offer cooling-off periods, so you can change your mind within a certain period – often two weeks – and still get a refund on the premium you paid.
No. You can't remove benefits that you don't want to pay for. However, there are hundreds of health insurance policies on the market, which all come with different benefits and price points. Finder's comparison tool can help you find a policy that suits your needs.
Gary Ross Hunter is an editor at Finder, specialising in insurance. He’s been writing about life, travel, home, car, pet and health insurance for over 6 years and regularly appears as an insurance expert in publications including The Sydney Morning Herald, news.com.au, The Telegraph, Explore Travel and Escape. Gary holds a Kaplan Tier 1 General Insurance (General Advice) certification and a Kaplan Tier 1 Generic Knowledge certification which meets the requirements of ASIC Regulatory Guide 146 (RG146).
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