Why your health insurance bills could explode in 2026
Written by Phillip Portman
The cost of living crisis shows no signs of slowing down and for millions of Australians with private health insurance, there’s a good chance you’ll be paying even more for your cover in 2026.
That’s because health insurers have passed on the biggest round of health insurance premium increases since 2017, with private health insurance premiums increasing by an industry average 4.41% from 1 April.
This average increase is above the rate of inflation, partly because health funds are grappling with rising treatment costs and industry pressures. But the keyword here is “average”, with some Aussies being hit with even bigger increases.
If you’re a customer with AIA, the average increase is 5.98%, while the smallest average is 1.98% with GMHBA.
The good news is that you don’t have to accept paying higher prices. By comparing your options, you may be able to switch to a similar level of cover at a lower price. Or, by assessing which services are still important to you, you may be able to move to a lower level of cover that still provides you with the benefits you need.
We do not compare all health funds in the market, or all policies from our partner funds. Not all policies or special offers are available to all customers, and some may only be available over the phone or on the website. Learn more.
Paying too much for health insurance?
Step 1: Select your current health fund below.
Step 2: Once you answer a few basic questions, you will have the opportunity to compare quotes from our range of health funds.
The logos displayed are for the top 10 largest health funds by market share in Australia as of April 2026.
How much more could I be paying in 2026?
It’s really important to note that what you’ll pay can vary based on a range of factors, including:
- The excess you select
- Where you reside
- The level and type of cover you choose
- If you’re eligible for any rebates or the age-based discount
- If the Lifetime Health Cover loading applies to you.
Compare the Market analysis of health insurance premiums* shows that someone who’s been hit with an increase of 4-5% would pay between $105.60 and $132 more each year to an average hospital policy of $2,641.
For someone with an average combined policy with hospital cover and extras costing $3,560, a 4-5% increase would add between $142 and $178.
Over the last decade, the overall industry average for health insurance premiums has risen every single year. In fact, the average for premiums has increased nearly 35% from a decade ago.
Choose your type of cover to see if you could be saving
Looking for cheaper cover is easier than you think with these tips
Even if your health insurance looks competitive, it pays to keep checking regularly. If your premium feels high, compare what’s on offer elsewhere. You could find the same cover for less, or better benefits for the same price.
Health insurers love tempting new customers with flashy perks, from waived waiting periods on extras to weeks of free cover and reward programs (something you usually won’t get by staying loyal). These bonuses can seriously boost value, but they’re usually reserved for switchers, not long‑time members.
If you’re facing high premiums, don’t ditch health insurance altogether. Instead, strip back the features you don’t need. A slimmer policy could still protect what matters — without the hefty price tag.
Just because health insurance can offer good value doesn’t mean your current policy is the best deal for you. Prices and benefits change all the time, especially if you haven’t compared plans in a while — and that can leave you paying more than necessary.
Our comparison experts can help make shopping around simple
It only takes a quick phone call or a few minutes to compare policies on our website.
*Averages based on policies purchased via Compare the Market between January and November 2025. Figures include rebates and age-based discounts as well as lifetime health cover loading where applicable.