Media Release

Aussie families could be forking out 20% of their income on health cover by 2051

  • Aussie families currently spend 8.8% of their disposable income on health cover
  • The average family policy costs $392 per month compared to a forecast of $2,354 in 2051
  • finder.com.au tips for keeping health insurance within budget

5 February, 2018, Sydney, Australia – Australian families could be spending two out of every ten dollars they earn on health insurance by 2051, according to new research from finder.com.au, the site that compares virtually everything.

Following the official health insurance price hike announcement at the end of January, finder.com.au can reveal that insurers have increased their premiums by 5.42% on average every year since 2010.

According to finder.com.au’s analysis, during that same period wages have only increased by an average of 2.86% each year.

Bessie Hassan, Insurance Expert at finder.com.au, says the steadily increasing cost of health insurance is putting significant financial strain on Australian families.

“Currently, the average policy costs families $392 a month, while the average monthly disposable household income is $4,455. This means that families with private health cover spend, on average, around 8.8 per cent of their disposable income on health insurance each month," said Ms Hassan.

According to finder.com.au’s forecast, the average Australian family’s disposable income spent on health insurance could reach 10% by as early as 2023 and 20.2% by 2051, if health insurance premiums continue to grow faster than wages at their current pace.

“Although this year’s premium increase is the lowest it has been since 2001, it’s still double the rate of wage growth. If increases continue at the current rate, health cover will become increasingly unjustifiable for many Australian families - especially since the average policy is forecasted to reach $2,354 in 2051.”

Tips from Bessie Hassan, Insurance Expert at finder.com.au, on how to reduce health insurance costs:

Don’t pay for cover you don’t need
“If you’re on a couple’s policy it may be worth taking out two single policies if only one of you requires top hospital cover for pregnancy. The same applies to extras policies; one person may want comprehensive extras for optical and major dental while the other may not need a policy if they only visit the dentist twice a year.”

Pay 12 months up front before 1 April
“You can lock-in 2017 prices for a whole year by paying your annual premium up front before the price hike on 1 April. Often health funds apply an additional discount if you pay on an annual basis.”

Compare policies side-by-side
“The average Australian stays with their health fund 11.8 years on average so if you haven’t reviewed your cover in a while it’s worth checking out online what other funds are offering and whether you can find the same cover for cheaper with a different provider,” says Ms Hassan.

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Disclaimer

The information in this release is accurate as of the date published, but rates, fees and other product features may have changed. Please see updated product information on finder.com.au's review pages for the current correct values.

About us

More than 3 million Australians turn to finder.com.au every month to save money, time and make important life choices. We compare virtually everything from credit cards, phone plans, health insurance, travel deals and much more.

Our free service is 100% independently-owned by two Australians: Fred Schebesta and Frank Restuccia. Since launching in 2006, we’ve helped our users make more than 17 million decisions.

We continue to expand and launch around the globe, and now operate in the United States and United Kingdom. For further information visit www.finder.com.au.

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