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Health Insurance Premium Increase 2026
Health Insurance Premium Increase 2026
Written by
Madeline Pettet
Edited by
Laura Crowden
Reviewed by
Andres GutierrezCompare Health Insurance Policies
Save time and effort by comparing a range of Australia’s health funds with iSelect
Why did my health insurance premium increase?
Long story short
Health insurance premiums rise each year, usually on 1 April
The premium increase aims to ensure private health insurance keeps pace with the rising costs of healthcare.
In 2026 health insurance premiums will rise by an average of 4.41%
Remember, this is just the industry average. Some policies may have a greater increase, while others have a smaller one.
You can’t prevent a premium rise, but you can try some tricks to save money on your health insurance premiums
Try locking in last year’s premium or switching to a new policy.
Why did my health insurance premium increase?
Health insurance premiums generally rise to cover growing costs of providing health care, increased use of certain health services, or a combination of the two. More specifically, rising premiums can be caused by increased wages for doctors, nurses, and hospital staff, or increased costs of medical equipment and technology.1For more information, see Commonwealth Ombudsman – The reasons and processes behind premium increases, and your options if you’re considering changing your health insurance policy
Under the Private Health Insurance Act 2007, health insurance providers have to submit any changes they want to make to the Australian Government, specifically the Federal Minister for Health and get them approved before they can increase their premiums.
How much are my premiums rising in 2026?
Health insurance premium rises aren’t consistent across the industry. Your individual premium increase will depend on your health fund and which insurance policy you’ve taken out with them.
In 2026, the industry average premium rise is 4.41%.2For more information, see Department of Health and Aged Care – Value for private health insurance But keep in mind, this is an average only, with some individual policies rising by much more than that and others less. Some may even stay the same or decrease in price.
2026 Premium increases of key private health insurance providers in Australia
| Provider | 2026 premium rise |
| Industry average | 4.41% |
| Australian Unity | 3.98% |
| BUPA | 4.80 % |
| GMHBA | 1.98% |
| HBF | 2.15 % |
| HCF | 4.96 % |
| Health Partners | 3.94 % |
| Latrobe Health | 4.53% |
| Medibank | 5.10% |
| NIB | 5.47% |
| Peoplecare | 4.01% |
| Westfund | 3.26 % |
Source: Department of Health and Aged Care – Average annual price changes in private health insurance premiums
Helpful tip
Don’t just accept your health insurance premium increase as inevitable. The lead up to the premium rise each year is the perfect time to review your current policy and compare options. Sometimes switching to a new policy or pre-paying your annual premiums to lock in your current rate means your wallet can breathe a little easier over the year ahead.
Use a comparison tool like iSelect or get in touch our health insurance comparison experts who can give you the lay of the land and present options that fit your needs and budget like a glove.
Andres Gutierrez
General Manager – Health
Do rebates also increase each year?
The government’s private health insurance rebate is a contribution they make to the cost of your health insurance. The rebate amount is reviewed each year using something called the Rebate Adjustment Factor. The calculation takes into account the industry weighted average premium increase as well as the Consumer Price Index.
Unfortunately, that doesn’t necessarily mean that rebates increase at the same rate as premiums. In 2023, for example, the Rebate Adjustment Factor was calculated as 1, which meant that in 2024, the rebate stayed the same even though premiums went up an average of 3.03%. And in 2025, the rebate actually went down, thanks to a Rebate Adjustment Factor that was less than 1 (0.987 to be exact).
How can I prepare for the annual health insurance premium increase?
The reality of private health insurance is that annual premiums increase each year. But that doesn’t mean you’re powerless. Instead of just accepting the price hike, you could use your increase notification as your annual reminder to reassess your health cover and make sure you’re still getting value for your money. You have more control than you think!
Here are some practical steps you can take to prepare and potentially lessen the impact on your budget.
Lock in your current rate
Some health funds allow you to pre-pay your annual premium for the next 12 months at your current rate, before the increase takes effect. This is a straightforward way to delay the price rise for another year.
If you have the cash available, it’s a guaranteed saving. Contact your current insurer to see if this is an option for you.
Review your current cover
Is your current policy still the right fit? Your life and health needs change, but it’s easy to let your insurance tick over without a second thought.
Take a close look at what you’re covered for. Are you paying for services you no longer need, like pregnancy cover when your family is complete? Or perhaps you need to add services you think you’ll be likely to need in the near future.
Trimming unnecessary extras cover or adjusting your level of cover can often offset the premium increase entirely.
Compare providers and policies
Loyalty doesn’t always pay. Another insurer might offer a similar or even better policy for a lower price.
Don’t just look at the premium; compare the benefits, waiting periods, and any excesses or co-payments. A higher excess can significantly lower your monthly premium, but you need to be comfortable paying that amount up-front if you’re admitted to hospital.
Use comparison tools (like ours) to see what else is out there – you might find some surprising savings.
What if I can’t afford the increase?
Switch before you ditch. If your new premium is simply too high for your budget, don’t simply cancel your policy just yet. You have options to maintain private health cover.
You can reach out to health insurance comparison experts to see your options and what other policies are available. Maybe other health funds have lower rates than your current one.
Or you can also talk to your current insurer. They may be able to switch you to a more affordable policy that still meets your essential needs. You can also consider cheaper options by agreeing to a higher excess or co-payment for hospital admissions, or by reducing benefits for some ancillary services.
The priority should be maintaining a good level of hospital cover to protect yourself from potentially large medical bills. Maintaining your hospital cover will also help you avoid paying additional tax if you’re a higher income earner thanks to the Medicare Levy Surcharge. Also keep in mind that if you cancel your hospital cover but then rejoin down the track, you’ll potentially have to pay higher premiums thanks to Lifetime Health Cover (LHC) loading.
Where can I find and compare health insurance providers?
If it’s time to start reviewing your health insurance options, we’re here to help. We’ve partnered with a variety of providers to help you easily compare health insurance policies. You can use our handy online comparison tool, or, if you prefer, you can call our friendly health insurance comparison experts on 1800 784 722.
We’d be happy to help you find a policy that suits your unique needs.
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