In December 2021, the Federal Minister for Health and Aged Care announced that health insurance premiums would increase by an industry-weighted average of 2.70% from 1 April 2022.
With these rises set to commence for some funds early next year, what does this mean for Australians?
According to the Minister for Health and Aged Care, singles will pay an extra $58.24 per year on average, with families looking at an increase of around $135.52* per year.
Our health insurance expert Anthony Fleming says “We know even a small change can have a big impact on household finances.”
“How the premium change impacts you, and when it will commence, will depend on which health fund you are with.”
In fact, your premium might be going up by more or less than the 2.70% weighted average.
Review your current policy to see if it still fits your needs, budget and lifestyle. If you haven't done this in a while, you may find your policy is no longer suitable.
Reconsider services you may not need. Policies bundle up cover for different procedures under one product. This means you might be paying for expensive services you don't need (e.g. birth-related services).
Update your cover. Has your life changed since you took out your current policy? Are you planning on having a family? Or maybe you've recently suffered a health scare? Whatever it may be, switching to a different policy could make the difference in safeguarding your future health and save you much-needed money.
You will be notified by your health fund via post, email or SMS. This way, you can check over any updated policy information and make an informed decision about what to do next. While rate rises can take effect as early as 1 April 2022, some funds have already flagged their intention to delay their rate rise until later in the year.
For over 15 years, the Department of Health has approved private health insurance rate rises. Take a look to see how health insurance rates have changed over the past decade.
|Health insurance rate increase by year|
|Year of average private health insurance rate rise||Rate rise (%)*|
|2020 (delayed for many funds)||2.92%|
|* Industry average, as taken from health.gov.au|
With so many options available and differing levels of cover to choose between, it can be daunting.
Let us help take the stress out of the process with our free health insurance comparison service. You can easily compare policies to see if there’s an outstanding alternative to your existing policy for you and your family.