When Do Private Health Insurance Premiums Increase?

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When are my health insurance premiums set to increase?

Do health insurance premiums increase every year?

Why do private health insurance premiums increase every year?

How are health insurance premium increases decided?

How will I be notified of my premium increases?

How can I prepare for the yearly average premium rise?

What other factors could affect my premiums?

Where can I find and compare health insurance providers?

Long story short

Private health insurance premiums change every April

In Australia, premiums typically increase on 1 April, with the 2026 average rise hitting 4.41%.

Insurers change premiums each year because of rising healthcare costs

Higher wages and advanced medical tech are some of the reasons that drive annual premium increases.

There’s an approval process that governs the average annual premium increase

Insurers must justify hikes to the Australian Government, ensuring they’re fair and necessary.

There are ways to save on premiums

Prepay to lock in rates, compare policies to get a cheaper deal, or simply adjust your cover to better suit your needs and budget.

When are my health insurance premiums set to increase?

Most health insurance premiums usually increase each year on 1 April. This year, policies will be increasing by an average of 4.41% on 1 April 2026. 

However there have been some instances in recent years of delayed premium increases.  For example during 2022–23, some insurers decided to hold off on rate increases, so they could return savings from fewer claims during the COVID-19 pandemic. 

With this year’s average increase of 4.41% being the highest since 2017, this date is becoming increasingly important for households watching their budgets.

So, 1 April isn’t just April Fool’s day. It’s the day that savvy policyholders take as a signal to review their private health insurance and check if it still fits their needs and budget.

Do health insurance premiums increase every year?

Yes, private health insurance premiums in Australia increase on average each year because health funds need to keep up with rising healthcare costs. Each year insurers can ask the Federal Health Minister to allow them to increase premiums in what’s known as the ‘annual premium round’.

Australian Government data shows this annual bump is anything but arbitrary. Private health insurance average premium increases have been recorded almost every year since the 90s.

In 2026, the average premium rise is 4.41%. While this is the first premium increase to go beyond 4% since 2017, it’s worth noting that this latest figure is lower than the average of the previous two decades – which hovered around the 5% mark. However, another key thing to note is that these percentages are also just the average – so your new rate could be more or less depending on your health fund.

So even though increases are inevitable, industry average rises have stabilised to around 3% in the 2020s. 

Source: List of historical premium price changes by insurer for 2026

Why do private health insurance premiums increase every year?

We’ve mentioned it in passing before, but the main reason is the rising costs of healthcare. 

Aussies are lucky to have one of the best health systems in the world. But cutting-edge medical tech, world-class doctors, and highly trained healthcare professionals don’t come cheap. Insurers need to ensure they can cover these costs while remaining financially viable – which is why premiums go up.

Let’s break down the factors driving these increases:

• Higher wages for healthcare workers: Doctors, nurses, and hospital staff deserve fair pay, and these wage increases contribute to higher costs.
• Advanced medical technology: New and improved medical equipment and procedures come with a hefty price tags.
• Increased service usage: As more people use health services, insurers need to cover more claims. Australia’s also got an ageing population, which means a growing number of people are requiring medical care more often and for more complex, chronic conditions – which is driving up healthcare costs.
• Complex treatments: The availability of more sophisticated and costly procedures in private hospitals also plays a role.

How are health insurance premium increases decided?

Health insurers don’t just raise premiums on a whim. They must submit detailed proposals to the Australian Government’s Minister for Health and Ageing outlining why an increase is necessary and how much they plan to change each policy. 

Here’s how it works:

All private health insurers put in their requests to change premiums at the same time. Usually, they receive information on the premium round and application forms in September. Then, they hand in their applications to the Department of Health, Disability and Ageing in November.

In their applications, insurers have to lay everything out – detailed financials plus their cost and benefit forecasts – to show why they’re asking for premium changes.

The department runs the whole process and examines the submissions with the Australian Prudential Regulation Authority (APRA). The federal government ensures that any increase is justified and contributes to system-wide improvements, such as better wages for healthcare workers and sustainable hospital services. Any premium changes have to get the tick of approval from the Minister.

Insurers are then notified of the average premium increase sometime between December and January, although it could take a little longer than that.

Health funds must get the green light from the Minister before fund members are notified of any increases, and this approval can go from when the Minister announces the new rate all the way through to March.

The new rate is announced to the public.

Premium changes are finally rolled out on 1 April. Don’t worry, your health fund will notify you before any changes to your premium kick in.

How will I be notified of my premium increases? 

Your health insurance provider is required to notify you in advance – at least 30 days before any premium changes kick in (unless there’s a delay in government approvals). Heads up are typically given to policyholders via post, email, SMS, or through your insurer’s portal – whichever your preferred mode of communication. This gives you a bit of breathing room to look over your cover, see how it stacks up against other policies and providers, and decide what you want to do next.

If the new price feels a bit steep, you’ve still got options to keep your private health insurance. 

Helpful tip

Remember, keeping hospital cover is important if you want to hang on to your Lifetime Health Cover (LHC) loading status, avoid the Medicare Levy Surcharge (MLS) if you’re a higher income earner, or steer clear of the longer wait in public hospitals!

Most insurers offer lower premiums if you’re willing to take on a higher excess or copayment. That means you’ll pay more up-front if you go to hospital, but you’ll pay less in premiums each month. Just keep in mind that it’s worth choosing an excess that you’re comfortable paying if you do need hospital treatment.

If your extras cover is pushing up the price, you can usually trim it back. That might mean switching to a lower tier with fewer inclusions or dropping extras altogether if you’re not getting value from things like dental, physio or optical. 

You can always shop around and see what other policies have got to offer. And if you decide to switch and are worried about waiting periods that you’ve already served, don’t be. Unless you’re new to private health insurance or upgraded to a higher level of cover, you won’t have to serve them again.

Andres Gutierrez

General Manager – Health

How can I prepare for the yearly average premium rise? 

Premium rises are generally unavoidable, but you can still be proactive about preparing for them. The window before the rise comes into effect can be a great time to review your coverage.

Have your needs changed since you last reviewed your coverage? Does the coverage you’re getting still make sense for you at the new (higher) price? How does your current policy compare to what else is out there?

Given that not all providers raise their premiums by the same amount, shopping around for a different health insurance policy could end up saving you money.

Alternatively, some providers allow customers to prepay usually up to 12 months in advance. If you can afford to pay the annual premium sum up-front, prepaying effectively preserves your current rate for up to another year. It’s also worthwhile checking if your provider offers a prepay discount, which could save you even more. 

What other factors could affect my premiums?

Apart from the annual price hike, there are other things that could affect how much you’ll pay for health insurance:

Age

Your age can impact your premiums, especially once you move into Lifetime Health Cover (LHC) loading territory or become eligible for age-based discounts.

Let’s tackle age‑based discounts first. If you’re under 30, you might score an age‑based discount on your hospital cover (but not extras cover, sorry). This discount reduces gradually as you get older. The sooner you get a hospital cover, the longer you could keep the same discount – pretty much every year until you hit 41. If you started your hospital cover at 21 years old, just imagine the savings you could get over 20 years!

Now, let’s talk about the Lifetime Health Cover (LHC) loading. If you took out hospital cover after 1 July following your 31st birthday, you may be paying LHC loading on your hospital policy – which bumps up your premiums. Getting hospital cover while you’re young – and keeping this cover continuously – helps you avoid (or eventually remove) this penalty rate. 

Income

Your income can also affect your eligibility for the Australian Government Rebate, which helps to reduce the cost of private hospital cover. The higher your income, the less rebate you’ll get. This means you’ll be paying higher premiums than those with lower income.

You can claim the rebate either at tax time or as a reduced premium throughout the year. If you choose the reduced‑premium option, you’ll need to tell your insurer your age and estimated income bracket. Just remember: if you pick the wrong tier, it gets corrected at tax time – which can mean you’ll owe a bit back or get a refund.

Your policy

Not surprisingly, different levels of cover come with different price tags. Private health insurance policies with broader hospital benefits or generous extras limits generally cost more. 

Plus, there are things like excesses and co-payments. If you pick a higher excess, you could have lower premiums – and vice-versa. Co-payments are a set out-of-pocket cost that you agreed to pay your insurer for each day of your hospital stay. Choosing a higher co-payment can also bring the cost of your premiums down.

Whether you have a family

Whether you’re single, part of a couple, or covering the whole family will change your premium. Depending on where you are in life, you may need a singles, couples, or family cover. And covering one individual (in a singles policy) costs less than covering two (or the entire family).

Also, family cover usually falls under higher income thresholds for the rebate and the Medicare Levy Surcharge, which can influence how much support or surcharge applies.

Your location

Where you live can also impact how much you pay. Pricing can vary by state and region, depending on things like hospital fees, local health costs, and insurer arrangements.

Where can I find and compare health insurance providers?

If your health cover’s due for a bit of a check‑up – or the latest premium hike has you thinking it’s time to shop around – we’ve got your back. We’ve teamed up with a bunch of health insurance providers so you can easily line up your options and see who stacks up – without your stress levels going up too.

Jump onto our comparison tool to see what’s on offer, or give our friendly health insurance comparison experts a buzz on 1800 784 722.