Australians will wake up on Monday and pay more for their private health insurance.
More than 15 million people will have their premiums rise by more than 3 percent, the largest increase in five years.
Customers at the country’s largest private health fund, Medibank Private, will pay 3.3 per cent more, while Bupa prices will rise 3.6 per cent.
Policyholders with HSF will experience an increase of 4 percent and NIB premiums will increase by 4.1 percent.
The Tasmania-based health insurance company won the trophy for the smallest increase in average premium, up just 0.3 per cent.
Customers at the country’s largest private health fund, Medibank Private, will pay 3.3 percent more
Meanwhile, Bupa prices will rise 3.6 per cent, HSF will see a 4 per cent increase and NIB premiums will rise 4.1 per cent.
Meanwhile, CBHS Corporate Health members will be hit with a 5.8 percent increase.
Federal Health Minister Mark Butler approved the average increase of 3.03 percent across the 31 insurers in early March, emphasizing that it was lower than the annual increase in wages and inflation.
“The increase in healthcare premiums is much lower than the increase in the costs of other insurance products, which increased by about 17 percent in 2023,” he said at the time.
Insurers may increase premiums annually, but the Minister of Health must approve each increase.
Last year, Mr Butler rejected the health funds’ initial request to increase reimbursements by up to 6 percent.
About 55 percent of Australia’s population is covered by private health insurance, with costs partially subsidized by the government through a tax credit that decreases as the policyholder’s income grows.
Last year, health insurers paid out more than $23.5 billion in health and medical benefits to policyholders.
The insurers say they are doing everything they can to keep premiums reasonable.
“We know that many households are struggling right now, and our focus has been on balancing the impact of rising healthcare costs with the need to keep premiums affordable for our customers,” said Medibank Chief Customer Officer Milosh Milisavljevic.
‘Premium increases are never welcome and that is why we have worked hard to ensure that premiums remain as low as possible this year, despite rising healthcare costs in the private system.
Health Minister Mark Butler (photo) approved the premium increases in March
It is also lower than the price increases for other insurance, such as car and home insurance.
Bupa Health Insurance Managing Director Chris Carroll know that ‘many household budgets are still under real pressure’.
“We want our members to know that we are working hard to ensure they continue to have access to affordable, high-quality health care,” Mr. Carroll said.
‘Bupa’s premium adjustment this year is lower than inflation and less than rising healthcare costs.
“We know every dollar helps, which is why we’ve returned $1.35 billion to our customers through cashbacks and premium deferrals.”
Health insurance premiums have risen quite modestly in recent years: by 2.9 percent in 2023 and by 2.7 percent in both 2022 and 2021.
However, premiums more broadly have risen significantly, rising more than 17 percent by 2023, making a significant contribution to consumer price growth metrics.
A study by the competition watchdog published in December showed the sector’s net profit after tax rose 110 percent to almost $2.2 billion in the 2023 financial year, up from $1 billion in the previous 12 months.