Navigating the ever-changing landscape of healthcare costs can be a daunting task for Australians, especially for those over 50 who are often on fixed incomes or planning for retirement. As we approach April 1, it’s important to be aware of the upcoming changes to private health insurance premiums, which are set to increase by an industry average of 3.73 per cent.
This rise in premiums will affect approximately 15 million Australians who rely on private health insurance for their medical needs. The increase, approved by Health Minister Mark Butler, comes after a period of negotiation in which insurers were asked to resubmit their proposed hikes multiple times. Initially, insurers proposed increases of up to 6 per cent, but after the government’s intervention, the approved average increase is significantly lower, though still the highest since 2018.
As premiums climb, National Seniors Australia (NSA) warns that affordability is paramount, urging urgent reforms to prevent older Australians from being priced out of essential health cover. During the COVID–19 pandemic, premium increases were either put on hold or reduced to alleviate financial pressures on policyholders. However, as we move forward, the industry is adjusting to the new economic realities. Nib, one of the major health funds, will see an average increase of 5.79 per cent, while HBF has announced a more modest rise of 2.8 per cent, the lowest among the five major health funds.
Health Minister Butler has emphasised the government’s role in ensuring that any increase is justified and proportionate, stating that the approved figure represents a ‘better deal for the 15 million Australians with private health insurance’. This sentiment reflects the government’s commitment to balancing the needs of consumers with the financial sustainability of the health insurance sector.
The impact of these increases will vary depending on age and the type of coverage one has. For example, according to Canstar, the average combined hospital and extras health insurance premium for singles under the age of 36 is currently about $3,199. This figure will rise to approximately $3,318 under the new rates. For those aged between 36 to 59, premiums will increase from $3,719 to $3,857, and for individuals aged 60 and over, from $4,176 to $4,331.
Private Healthcare Australia (PHA), an industry group, has pointed out that the approved increase is below the health inflation rate of 4 per cent, labelling it the ‘lowest increase possible’. PHA’s chief executive, Rachel David, has acknowledged the cost of living pressures on customers but also highlighted the need to ensure that hospitals are adequately funded, especially in the wake of the pandemic and the inflationary economy.
National Seniors Australia has reiterated its call for an independent review of the private health system and an increase to the Private Health Insurance Rebate for low-income earners, warning that without action, many older Australians may be forced to abandon their coverage.
As private health insurance premiums continue to rise, many Australians—especially older policyholders—are left weighing the cost against the necessity of coverage. With affordability becoming a growing concern, calls for reform and increased support are gaining momentum.
What are your thoughts on the upcoming premium hike? Will this change impact your decision to keep or adjust your health insurance coverage? Do you believe the government should step in with further reforms? Share your insights in the comments below—we’d love to hear your perspective on this important issue.
Also read: Health insurance hike alert: Will your budget survive?
Well the pension rise of $4.65 per fortnight next month won’t come near to covering that! What a joke, it’s an absolute insult.