How will I know if my premium is changing?
You will be notified of your private health insurance premium increase 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 some funds increase their premiums as early as 1 April each year, other funds have announced that they will delay their rate rise until later in the year.
How are the rate rises determined?
Before health funds can raise their premiums, they must submit their proposed price increases to the Australian Government and the Australian Prudential Regulation Authority (APRA) for approval. The federal government checks all submissions to ensure they’re sustainable, fair and necessary.
Some factors that lead to rate rises include:
- Increased health care costs (including doctors’ and hospital charges)
- An increase in the cost of medical equipment and changing technology
- The growing number of complex and expensive procedures available in private hospitals
- The rate of private health insurance claims.
As the health insurance premium rate rise is a weighted average, some health funds increase their prices more than others.
This weighted average is based on changes to a health fund’s entire portfolio of policies; this means the cost of some policies may go up a substantial amount, some may increase slightly, some may not go up at all, and some could even decrease.
These proposed changes are reviewed, and if the insurer can’t sufficiently justify why they need to increase their premiums, the proposal will be rejected.
Average rate rise per fund
Below is the average rate rise for each health fund in 2023. Keep in mind this is the average increase across all policies offered by the health fund; not all policies will be increased by this amount, if at all.
|Health fund||Average rate rise (%)|
|ACA Health Benefits Fund Limited||3.92%|
|AIA Health Insurance||1.69%|
|Australian Unity Health Limited||3.76%|
|BUPA HI Pty Ltd||3.39%|
|CBHS Corporate Health Pty Ltd||5.38%|
|CBHS Health Fund Limited||4.46%|
|Cessnock District Health Benefits Fund Limited||3.93%|
|Defence Health Limited||3.48%|
|Doctors’ Health Fund Pty Ltd||2.15%|
|HBF Health Limited||4.49%|
|Health Care Insurance Ltd||-0.09%|
|Health Insurance Fund of Australia Limited||3.10%|
|Health Partners Limited||2.93%|
|Hospitals Contribution Fund of Australia Ltd||3.33%|
|Latrobe Health Services Limited||2.15%|
|Medibank Private Limited||2.96%|
|Mildura District Hospital Fund Ltd||2.48%|
|National Health Benefits Australia Pty Ltd||2.86%|
|Navy Health Ltd||2.94%|
|NIB Health Funds Ltd||2.72%|
|Peoplecare Health Limited||2.79%|
|Phoenix Health Fund Limited||3.72%|
|Police Health Limited||0.00%|
|Queensland Country Health Fund Ltd||3.17%|
|Queensland Teachers’ Union Health Fund Limited||0.81%|
|Reserve Bank Health Society Ltd||3.18%|
|St Luke’s Medical and Hospital Benefits Association||2.86%|
|Teachers Federation Health Ltd||2.50%|
|Transport Health Pty Ltd||2.49%|
A brief history of private health insurance rate rises
Since the Private Health Insurance Act 2007, the Department of Health has approved private health insurance rate rises. Take a look to see how health insurance rates have changed in Australia over the past decade.
|Health insurance rate increase by year|
|Year||Rate rise (%) *|
|2020 (delayed for many funds due to the pandemic)||2.92%|
|* Industry average, as taken from health.gov.au|
Finding a great value policy for your needs
With so many options available and differing levels of cover to choose between, it can be daunting to know which policy is the right one for you.
Let us help take the stress out of the process with our health insurance comparison service. With our service, you can easily compare policies to see if there’s an alternative to your existing policy for you and your family.