The long-awaited news is finally out, and sadly, it’s not looking good for any Australians who have private health insurance. The government has announced they have approved a health insurance premium increase of an average of 3.73 per cent. This is the biggest health insurance increase since 2018, during a time we know so many Australians are already struggling.
This premium increase will come into place on April 1 this year which doesn’t leave much time at all to act. According to Canstar, if you’re aged 60 and over and have combined hospital and extras cover, as a single, your payment will increase from $4,176 a year to $4,331 a year*. That’s an increase of $155 a year. For some, that might not sound like much. But I know for many of you, including myself, we need that $155 in our pockets*.
It isn’t just singles who are going to face a significant price increase. If you have couples or family private health insurance cover, you will also be paying more come April 1.
It’s important you understand when it comes to these premium increases, not every private health insurer is increasing their rate the same. Nib will increase its premiums by an average of 5.79 per cent*, while HBF announced a 2.8 per cent average increase which is the lowest out of the five major health funds. Out of the 35 private health insurers that operate here in Australia, the lowest increase is 1.91 per cent and the highest increase is a staggering 9.56 per cent*.
This is why it is so important to compare your health insurance before April 1*. You do not want to get stuck with a health insurer who is increasing their prices well above the average of 3.73 per cent*. At the end of the day, it’s an added cost to your pocket during a time when we know so many Australians are already struggling.
ABC News said, ‘While the rise is below health inflation, it is above household inflation, with the additional hip-pocket pressure coming ahead of an election that will largely be fought on cost-of-living issues.’
If you do have private health insurance, we highly recommend speaking to our partners Compare Club* and comparing your health insurance*. You could save hundreds if you switch from a health insurer who is increasing their rates significantly, compared to one who isn’t increasing their rates too much at all.
For full transparency, I compared my health insurance back in September last year with Compare Club* where I moved from HCF to Australian Unity and I saved $17.64 per month, which is a savings of $211.68 per year. I know that doesn’t seem like much to some, but to me it is, and I’d much rather that $211.68 be in my pocket then theirs*…
If you have private health insurance and want to save, over the past 4 years, we know 44,197 Australians over the age of 50 who have managed to save an average of $259.50 on their health insurance*, just by comparing and switching their cover.** And you could be one of them!
Compare your health insurance with Compare Club today*, and get in before health insurance premiums increase on April 1!*
*Please note, members, that this is a sponsored article. All content of ours that has an asterisk next to it means we may get a commission to write an article or post a deal. We do this to assist with the costs of running the SDC. Thank you!
**Based on 44,197 Compare Club customers over the age of 50 who have compared and switched their health insurance over the past 4 years.
