Why do Private Health Insurance premiums go up on April 1st?
Every year in Australia, Private Health Insurance premiums increase to align with wage growth and inflation rates. Due to the COVID-19 pandemic, insurers spread out their annual rate adjustments across 2021-2023 and sometimes skipped them altogether. However, in 2024, premiums returned to normal, with all Private Health Insurance companies implementing increases on April 1st.
This year’s premium hike averages 3.03%, the steepest rise since the pandemic period. Minister for Health and Aged Care Mark Butler MP notes that while this increase resembles pre-pandemic levels last seen in 2019, it remains below Australia’s overall wage and inflation rate of 4.1%.
Despite these adjustments, major Australian Private Health insurers have faced criticism for accumulating significant premiums during the pandemic. Insurers retained substantial sums while elective surgeries were halted during lockdowns. The ACCC has been actively pressing insurers to provide substantial refunds to policyholders through deferred premiums, cash-back payments, and limits on extras rollovers.
Factors contributing to rising Private Health Insurance premiums include increased costs of medical devices, investments in IT infrastructure to enhance cybersecurity following recent cyber-attacks, higher hospital admissions, and general inflation affecting hospital operational expenses—all of which are passed on to policyholders.
Summary
Heading into 2024, ongoing inflation continues to impact many Australians’ budgets, with rising Private Health Insurance premiums adding further strain. The top five largest Private Health insurers by membership size, with the exception of one, are increasing their average policy prices beyond the industry standard of 3.03%. Medibank is raising prices by 3.31%, BUPA by 3.61%, HCF by 2.89%, NIB by 4.10%, and HBF by 3.95%.
Conversely, insurers with the lowest rate hikes this year include HCi with a 0.27% increase, Defense Health by 1.00%, Australian Unity by 1.42%, People care by 1.63%, and Health Partners by 1.93%. Notably, all these insurers are mutual or not-for-profit entities.
For those looking to manage their healthcare costs amid these increases, comparing Private Health Insurance plans through a trusted comparison service can help. Contact us today for a quick quote and find potential savings on your Private Health Insurance expenses this year.
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Which Health Insurance companies went up the most in 2024?
The top 12 health insurers that increased their premiums the most this year are CBHS, NIB, HBF, HIF, Phoenix, BUPA, OneMediFund, Hunter Health, Medibank, and St Lukes.
Which Health Insurers were above the industry standard rate rise in both 2023 and 2024?
The following Health Insurers have hiked their policy prices above the industry standard both last year and this year as well: CBHS, HBF, HIF, Phoenix, BUPA, Hunter Health, Medibank, ACA, and Navy Health.
Industry Average Rate Rise in 2023 was 2.90% and the Average in 2024 is 3.10%
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The Top 10 Health Funds that had the lowest rate rise in 2024
The Health insurers with the least rate increase this year are HCI, Defence Health, Australian Unity, Peoplecare, Health Partners, TUH, Mildura Health, AIA Health, Queensland Country Health Fund, and Teachers/Nurses Health.
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Which health Funds in Australia were below the industry standard Health Insurance rate rise in both 2023 and 2024?
These listed Funds are recognized for keeping their price increase lower than average for last year and this year running. They are HCI (who actually decreased their prices last year!), Peoplecare, TUH, Mildura Health, AIA Health, Teachers/Nurses Health, Doctors Health Fund, WestFund, GMHBA/Frank, Police Health, and LaTrobe Health.
Here is the complete list for all Health Insurance rate rise increases for 2023 and 2024.
Conclusion
Some Private Health insurers increase premiums more than others, but the reported percentage hike doesn’t directly correlate to your specific policy increase. For instance, while BUPA’s average increase is 3.61%, your individual policy might see a smaller or larger adjustment—perhaps 1% or 5%. You’ll receive official communication from your insurer detailing the exact change.
It’s wise to regularly compare your policy with others in the market to ensure you’re getting the best value. Understanding how your coverage stacks up against alternatives is crucial. At CheckYourBill, we can assist you in finding Private Health Insurance options that not only meet your needs but potentially cost less. Why pay more for insurance when you could save without sacrificing coverage? Get started with a quote below.
