Health insurance premium rates are rising in Australia

Posted: 16 March 2021 5:25 pm
News

The average price of private health insurance is set to go up once again in April, making it the second premium hike in around six months for many Australians, since the majority of funds delayed their 2020 increases until October last year because of coronavirus.

How much will my health insurance go up in 2021?

Health insurance will go up by an industry average of 2.74% on 1 April 2021 – the lowest premium increase since 2001. For example, if you're paying $85.65 a month now, come April 1 that could be an extra $28.20 a year based on the average increase of 2.74%.

However, it's not all the same – some policies will see a price jump as big as 5.47% while others will only rise by 0.50%.

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.

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 $200 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.

Name Product Tier Hospital treatments Price Per Month Apply
Frank Entry Hospital (Basic+)
Basic
    • 8 hospital services
    • Hernia and appendix
    • Dental surgery
$73.85
ahm starter silver
Silver
    • 27 hospital services
    • Heart and vascular system
    • Lung and chest
$109.05
HCF Starter Extras
Extras only
    • Basic extras cover
    • Cover for a range of therapies
    • 100% back on a yearly dental check at participating providers
$12.70
loading

Compare up to 4 providers

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.

Insurer2021 increase
ACA Health Benefits Fund Limited3.54%
AIA Health Insurance1.62%
Australian Unity Health Limited1.99%
BUPA HI Pty Ltd3.21%
CBHS Corporate Health Pty Ltd5.47%
CBHS Health Fund Limited4.26%
Cessnock District Health Benefits Fund Limited4.14%
CUA Health Limited2.99%
Defence Health Limited3.93%
Doctors' Health Fund Pty Ltd2.85%
GMHBA Limited3.24%
HBF Health Limited0.94%
Health Care Insurance Ltd2.91%
Health Insurance Fund of Australia Limited3.78%
Health Partners Limited3.35%
health.com.au Pty Ltd0.83%
Hospitals Contribution Fund of Australia Ltd2.95%
Latrobe Health Services Limited3.42%
Medibank Private Limited3.25%
Mildura District Hospital Fund Ltd4.07%
National Health Benefits Australia Pty Ltd3.56%
Navy Health Ltd3.46%
NIB Health Funds Ltd4.36%
Nurses & Midwives Health Pty Ltd3.38%
Peoplecare Health Limited3.90%
Phoenix Health Fund Limited3.47%
Police Health Limited3.10%
Queensland Country Health Fund Ltd4.43%
Queensland Teachers' Union Health Fund Limited1.11%
Railway & Transport Health Fund Ltd3.19%
Reserve Bank Health Society Ltd3.74%
St Luke's Medical and Hospital Benefits Association0.5%
Teachers Federation Health Ltd2.88%
Transport Health Pty Ltd2.61%
Westfund Limited4.30%
Industry Weighted Average2.74%

Source: https://www1.health.gov.au/

St Luke's Medical and Hospital Benefits Association and HBF reported the lowest average price increase of all insurers, at just 0.5% and 0.94%. At the other end, CBHS Corporate Health will be applying a 5.47% average increase.

Remember, health funds won't increase all of their policies by the same percentage. For example, a health fund may increase its hospital cover by 4% and its extras cover by 1%. However, insurers haven't confirmed exactly how they will apply the increases yet.

Ready to compare your health insurance options?

Use our free tool below to compare options from over 30 Australian health funds in just a few steps.

Save on your health insurance

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.
Go to site