Pumping premium: Health insurance costs have risen at double the rate of inflation
Australians have been slammed with expensive household bills, and health insurance is no exception, according to new research by Finder.
The cost of health insurance has increased by 204% since 2000, according to new analysis from Finder. That's more than double the rate of inflation over the same period (86%).
This means a policy priced at $1,000 in the year 2000 would now cost $3,038 for the exact same coverage.
Tim Bennett, health insurance expert at Finder, said many were struggling to keep up with soaring costs.
"Health insurance premiums increase every year to keep up with inflation, but other factors insurers consider, like rising rates of chronic disease in an ageing population, mean prices are outpacing inflation.
"Australians are being forced to fork out more money for almost everything, and in many cases insurance is the first non-essential to be cut.
"But cancelling your health cover can be a risky move, especially if you have a health scare in the future."
Health insurance is the third most stressful expense for those who have it, with 28% of private health insurance holders ranking it as one of their most stressful bills, according to Finder's Consumer Sentiment Tracker.
And this is on the rise. In January 2023, just 21% of health insurance holders counted their premium as one of their most stressful expenses.
Bennett said now was the time to review your policy.
"Remember to read the fine print to know what you're covered for. If you're in it for the tax benefits, a basic policy could be enough, but if you have a complex health condition you might need to stick to a gold or silver policy."
To help Australians make smarter financial decisions when it comes to health cover, Finder has announced the winners of its Health Insurance Awards 2024.
Finder's experts compared over 400 policies to help Aussies find the best health insurance products and providers for 2024.
HBF Health insurance was awarded Best Health Fund of the year. The not-for-profit came out on top because it has some of the best value policies on the market.
HBF's Basic Hospital Plus Elevate policy won the top spot for Best Health Insurance - Basic Hospital, while HCF's Hospital Bronze Plus scored top points for the Best Health Insurance - Bronze Hospital category.
HBF's Silver Hospital policy ranked in first place for Best Health Insurance - Silver Hospital, and St. Lukes Health Gold hospital policy won top gong for Best Health Insurance - Gold Hospital.
Westfund's Starter Extras won Best Health Insurance - Core Extras, while HBF's Flex 50 is the Best Health Insurance - Medium Extras category winner.
Latrobe Health Services - Core Complete Extras Package was awarded the top spot for Best Health Insurance - Comprehensive extras.
| Finder's Health Insurance Awards 2024 | |
|---|---|
| Category | Winner |
| Best Health Fund of the Year | HBF |
| Best Health Insurance - Basic Hospital | HBF |
| Best Health Insurance - Bronze Hospital | HCF |
| Best Health Insurance - Silver Hospital | HBF |
| Best Health Insurance - Gold Hospital | St.Lukes Health |
| Best Health Insurance - Core Extras | Westfund |
| Best Health Insurance - Medium Extras | HBF |
| Best Health Insurance - Comprehensive Extras | Latrobe Health Services |
For more information on Finder's Health Insurance Awards, visit https://www.finder.com.au/finder-awards/health-insurance-awards.
