The federal government has announced private health insurance premiums will rise by an average of 3.73 per cent from April 1.

The yearly price jump is higher than last year.

Health Minister Mark Butler said he called on insurers to resubmit their claims three times before he approved the industry average figure today.

Butler said the decision “ensured a better deal for the 15 million Australians with private health insurance”.

”It is my responsibility as health minister to ensure that any private health insurance premium increase is justified and proportionate,” he said.

About 15 million Australians have private health insurance cover, according to government figures.

A total of $29.9 billion was paid in premiums in the 12 months to September 30 last year.