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Health Insurance Premium Rate Rise 2018
What is the health insurance rate rise?
On the 1st of April each year, the Australian Government announces an increase in annual health insurance premiums.
The health insurance rate rise is based on the growing cost of healthcare including wages of hospital staff and rising costs of medical technology. Australia’s booming aging population and changes to the Australian Government Rebate (AGR) are some of the other reasons why your health premium will likely rise.
How much do health insurance premiums rise by?
Since 2010, you’ve been paying more on average for health insurance every year. Premiums have been going up by an average of 5 to 6% year on year.
Based on the 2017 rate rises, a $4,000 per year family policy could rise on average by $193 per year while a $2,500 per year singles policy could rise by an average $121 per year.
Since 2010, private health insurance industry average premiums have increased by a total of more than 50%.
|Private Health Insurance Industry Average Premium Increase by %|
The above table was updated in December 2017.
How will you know if your premium increases in 2018?
Your health fund will send you a letter notifying you of the premium increase under a health insurance rate rise, 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.
Will your health insurance premiums rise and by how much?
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.
Not every fund or policy increases by the same amount under the health insurance rate rise. Some policy premiums will increase, some decrease, and others will plateau.
- Click here to find your fund’s average private health insurance premium increase for 2017.
- Private health insurance premium increases for 2018 are yet to be announced. These will be available here when announced.
Can you avoid paying the health insurance rate rise?
There are a few ways you may be able lessen the impact of the health insurance rate rise. The rate released by the Australian Government is an average of all insurance providers rather than a single standardised rate. This means some insurance providers will have higher increases than others. There’s also differences in health insurance rates by state, product and other variables.
Lock in your current rate
One way to potentially avoid the rate increase is to lock in the old rate – if your fund allows it – by paying for a year up front before the changes take effect in April. At iSelect, we can help you compare from our range of health 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 2018 average price rise, you will pay the 2017 price^^.
Note: When it comes to rate rise, it’s important to note that not every fund or policy increases by the same amount. Some policy premiums will increase, some decrease, and others will plateau.
Whether you already have private health insurance or are looking into getting cover for the first time we can help you compare health insurance policies. Call our health insurance experts on 13 10 20 to chat about the rate rise and how it will affect you.
And remember there may be a better way
If you already have private health cover, your provider is obligated to tell you the health insurance rate rise in writing before April. iSelect can help you see if another provider can offer you a better plan or could help you get a better deal with your current health insurance provider.
See if you could save on your health insurance by calling 13 19 20.
* 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.
^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 2018.