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Health Insurance Premium Rate Rise Information
From the 1st of April each year, health insurance funds generally increase their premiums. These changes generally cover the growing costs and variations of services and claims, as well as any increases in the cost of medical treatments and medical technology.
What is the 2017 health insurance rate rise?
On February 10th 2017, an average health insurance premium percentage rate rise of 4.84% was announced by the Federal Health Minister.
How will your health insurance policy be impacted from the 2017 rate rise?
The upcoming April premium increase stands to hit the hip pocket of the average privately insured family by about $185 per year* .
For example a $4,000 per year family policy will rise on average by $193 per year while a $2,500 per year singles policy will rise by an average $121 per year.
Australians with private health insurance should receive a letter from their health fund in the coming weeks notifying them of exactly how much their premium will increase on 1 April.
How much do health insurance premiums rise by?
Exact premium increases vary from fund to fund, and from product to product. The percentage increase that will be applied to your individual policy will vary depending on your chosen health fund and policy.
How will you know if your premium increases?
Your health fund will send you a letter notifying you of the premium increase, as well as information about your updated health insurance policy. Most private health insurance funds will start to increase premiums from the 1st of April each year.
Can you avoid paying the health insurance rate rise?
It depends on your health fund. In some cases, if your fund allows it, you can choose to pay a year’s premium, in advance, before the rate rise takes effect in early April.
This could allow you to lock in your annual premium at the previous year’s rate, which means if your fund increases its rates, you won’t have to pay the higher premium until your prepaid policy expires.
We can help you compare from our range of funds^ to find a policy that suits your needs and perhaps even have you paying less than what you’d be paying if you stay with your current policy. Also, if you switch through iSelect and prepay the year’s premium before the 1st April 2017 average price rise, you will pay the 2016 price^^.
When it comes to rate rise, it’s important to note
Not every fund or policy increases by the same amount. Some policy premiums will increase, some decrease, and others will plateau.
Rate rise history
Since 2010, private health insurance industry average premiums have increased by a total of more than 50%.
Did you know that since 2010, premiums have increased by an average of 54.6% in total…
| Private Health Insurance Industry Average Premium Increase by % | |
| 2010 | 5.78% |
| 2011 | 5.56% |
| 2012 | 5.06% |
| 2013 | 5.60% |
| 2014 | 6.20% |
| 2015 | 6.18% |
| 2016 | 5.59% |
| 2017 | 4.84% |
| Total | 54.6% |
The above table was updated in February 2017.
What is the average premium increase by insurer in 2017?
Click here to find your fund’s average private health insurance premium increase for 2017.
Sources:
www.health.gov.au
www.phio.org.au
* Based on iSelect 2016 sales data which shows average annual premium for a family policy in 2016 was $3,835 which will increase by an average of $185.60 on 1 April 2017.
^Visit iSelect.com.au to view our range of funds. We do not compare all funds in the market, and not all funds are available at all times.
^^In order to prepay the year’s premium before 1 April through iSelect you will need to switch your health insurance by 31 March 2017