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In Brief
- The 4.41 per cent average increase comes into effect on 1 April.
- Experts say there are various ways you can seek to save money on your health insurance.
The federal government has sanctioned the most significant hike in health insurance premiums since 2017, a decision Health Minister Mark Butler attributed to the escalating expenses of delivering medical and hospital care.
Starting April 1, policyholders will see an average premium increase of 4.41 percent.
Yet, increases for specific policies may far surpass this average. For instance, Canstar, a financial comparison platform, discovered that even though last year’s average premium rose by 3.73 percent, the cost of individual gold policies surged by an average of 11.6 percent between March and April 2025.
Finder, another financial comparison site, revealed that 26 percent of insured individuals listed health insurance as one of their top three most stressful expenses last month.
Fourteen per cent — or around 2.1 million people — said they won’t be renewing their private health insurance this year.
Canstar analysis found an average-priced gold hospital policy for an individual could increase by $167. For families, the increase could be $330, based on the average yearly wage of $104,807 and applying the relevant private health insurance rebate.
SBS asked financial experts to share their top considerations for Australians amid the premium increase.
What is a premium?
A premium is the amount you pay an insurer for insurance cover. Depending on your individual circumstances, the cost of your premium can change.
Factors can include the type of cover you select, previous claims you’ve made, government taxes, discounts, and any optional benefits you select.
Why are insurance premiums rising?
The increasing cost of medical services, as well as higher claims costs, inflation, and more extreme weather events are behind this year’s increase, said Sarah Megginson, a personal finance expert at Finder.
In a statement, the government said the rise also reflects increasing wage bills and securing the viability of private hospitals.
How will I know how much my premium will increase by?
These are the average premium increases approved for some funds:
- ACA Health Benefits Fund: 4.48 per cent
- AIA: 5.98 per cent
- Australian Unity: 3.98 per cent
- Bupa: 4.8 per cent
- Hunter Health Insurance: 3.92 per cent
- GMHBA: 1.98 per cent
- HBF: 2.15 per cent
- HCi: 4.53 per cent
- HIF: 2.6 per cent
- Health Partners: 3.94 per cent
- HCF: 4.96 per cent
- Latrobe Health Services: 4.53 per cent
- Medibank: 5.1 per cent
- Mildura Health Fund: 4.25 per cent
- nib: 5.47 per cent
- Peoplecare: 4.01 per cent
- Phoenix Health Fund: 2.95 per cent
- Reserve Bank Health Society: 4.13 per cent
- St. Lukes: 4.25 per cent
- Westfund: 3.26 per cent
You can view the full list here. The federal government also has a website where you can compare products.
The government says it is up to each insurer to explain to their policyholders any changes to premiums, the reasons why they have made this decision and their policyholders’ options.
Canstar’s data insights director Sally Tindall said: “Get on the phone to your provider to understand exactly how much your premium is going up by. Then spend 30 minutes doing a health check on your insurance. It could potentially save you hundreds.”
What other steps can I take to find out more about health insurance premiums?
Canstar suggests exploring options including reviewing the level of cover and extras insurance, but being wary of the risks that could come from downgrading. The financial comparison site found that if an individual switched from an average-priced gold hospital insurance to the lowest, it could potentially save them $1,397 in a year.
Another suggestion is to pre-pay the next year’s premiums at today’s prices, before 1 April when the increase kicks in. According to Canstar, many insurers will let you pre-pay the next 12 months before they increase.
Megginson agreed and said: “You don’t have to accept the first renewal quote. Comparing policies, increasing your excess where affordable and reviewing whether you need all your current cover can help lower costs.”
Changing to an entirely new and cheaper provider is also an option, with some offering the same level of cover you had before.
“Switching to a comparable policy within the same tier can help mitigate or even neutralise the price hikes,” Tindall said.
Even just asking about bundling policies and asking about loyalty discounts with insurers can save you money, said Megginson.
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