Australian households are bracing for more pain in the hip pocket with confirmation private health insurance is increasing.
The Federal Government has announced premiums will rise by an average of 3.03% from April 1, but there are warnings the increase will be even greater for some health fund members.
The jump, which is the biggest increase to private health insurance in five years, is expected to affect around 15 million Australians.
The Health Minister has defended the increase, declaring the rise is well below the kind of growth seen in other parts of the economy like wages, the age pension and inflation.
“While we know that any increase will be hard to bear during a global cost of living crunch, the Albanese Government has ensured that health insurance premiums will fall relative to Australians’ wages,” Federal Health Minister Mark Butler said.
“The increase is well below the annual rise in wages, social security payments and inflation, with wages rising by 4.2 per cent and inflation increasing by 4.1 per cent in 2023, and social security payments increasing in line with inflation”.
Compare the Market’s Economic Director, David Koch, said the impending increase is a timely reminder to shop around.
“Many health funds chose to delay their premium increases in 2023, meaning this upcoming increase will be a lot sooner than expected for some people,” Mr Koch said.
“Health funds are increasing premiums by an average of 3.03%, but the hikes can vary widely between providers and policies.
“Now’s the time to ensure you’re not paying more than you need to for insurance. You may be able to secure the same level of coverage elsewhere for a lower price.”
