The Australian government has approved an increase of 3.73% on average in health insurance premiums, the largest since 2018. The increase that would be effective from 1 April 2025 means that a single person with gold hospital cover would have to pay an extra A$110 ($69) a year. The insurers had asked the government to effect a hike of 6%.
According to Australian health minister Mark Butler the federal government has signed off on a private health average industry premium increase of 3.73% on average, that will take effect from 1 April 2025.
The average 3.73% increase means that some insurers will raise premiums by more than that percentage, and others less. Around 15m Australians have private health insurance and a total of A$29.9bn was paid in premiums in the 12 months to 30 September 2024, according to the federal health department.
Private Healthcare Australia chief executive Rachel David said insurers needed to raise premiums to keep up with inflation.
"The increase of 3.73% agreed with federal regulators, is as low as the health funds can go without seriously squeezing private hospitals and other providers.”
An analysis shows that a family on the average-priced gold hospital policy could face an annual increase of A$217, as the average price rose from A$5,823 to A$6,040 if the 3.73% increase is applied.