News
9 March, 2025
Health insurance on the rise
PRIVATE health insurance premiums will increase by an average of 3.73 per cent this year.
The increase, announced by Federal Health Minister Mark Butler last week, is still below health inflation and will be passed on to health insurance members on April 1.
Private Healthcare Australia CEO Rachel David said the premium increase was necessary for health funds to meet the rising cost of healthcare and ensure private hospitals and other providers were adequately funded.
“Every premium increase is carefully calculated and regulated. We know people with health insurance are impacted by cost-of-living pressures, so health funds are doing everything possible to ensure health insurance remains affordable and accessible for Australians,” Dr. David said.
“Health funds have gone back to regulators three or more times this year to reach the lowest increase possible. But to remain viable, funds have to charge more because inflation is driving up the cost of everything health insurers pay for.
“We also need to ensure hospitals are adequately funded so they can manage the significant challenges they have experienced due to the pandemic and the subsequent inflationary economy.”
Health inflation rose by 4 per cent in 2024, with medical and hospital services being the main contributor at a time when the healthcare system was experiencing complex challenges. Health funds paid 8 per cent more for hospital claims last year compared to the year before.
ABS data shows annual increases for other insurance types have surged by up to 11 per cent.
