Health insurance soars again – how to beat the 4.41% increase
Health Minister Mark Butler has approved an average increase of 4.41% to private health insurance premiums, the fastest climb in a decade.
Mr Butler explained his reasoning for the hike was to preserve the quality of private health insurance policies while supporting private hospitals across the country.
"The government understands the pressure health insurance premium changes put on Australians and decisions about private health insurance premiums must put consumers first," he said in a statement.
"This premium round has been guided by my commitment to maintain the value of private health insurance for Australians, while making sure the sector plays its part in supporting private hospitals facing rising costs and significant challenges."
The average price increase across 5 major health insurers
| Health Fund | Average Price Increase |
| NIB | 5.47% |
| Medibank | 5.10% |
| HCF | 4.96% |
| Bupa | 4.80% |
| HBF | 2.15% |
How much extra you could be paying for cover
This year's premium hike is a 0.68% increase from the previous year's average increase of 3.73%.
While this may not look like much on paper. We did a quick number crunch to give you an idea of how much extra you could be paying.
According to Finder research, Australians with private health insurance currently pay $238 per month for their coverage.
Based on this average, the upcoming increase of 4.41% would see an increase of $126 per year.
Shadow Health Minister Anne Ruston sympathised with many Australian households who now may have to make considerable adjustments to their budget to maintain cover.
"At a time when household budgets are already under enormous pressure, this premium increase is another hit families cannot afford," she said.
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What you can do right now to preserve your cover
As many policyholders await for their health insurer to announce its upcoming premium change, there are a few things you can do now to minimise the blow:
- Get ahead with payments. If you are in a position to do so, pay out 12 months of your premiums in advance. This will ensure you "lock in" your premium based on the current rate for the year.
- Consider downgrading your cover. If it's been a while since you first took out your health insurance policy, you may not need/use all the features anymore. For instance, if you initially took out gold cover for pregnancy. Review your policy's details to check if there's room for you to cut back.
- Reevaluate your extras cover. While extras cover promises great benefits, if you're not maximising its value and are paying more than you're claiming, it may not be worth the trouble of hanging onto.
- Compare other policies. Every insurer manages their products differently, so there could be an opportunity for you to save while maintaining the same level of cover. Our health insurance quiz allows you to compare your options and puts you on the path to saving.
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