Media Release

Families could be forking out more than $200 a year for private health insurance, in this latest cost-of-living hit.¹

First came an interest rate rise, now another hip-pocket hit for Aussies – a cost hike effecting private health insurance, with an 4.41% average price increase approved across the industry.²

iSelect’s Sophie Ryan said the news was a fresh blow to families balancing budget pressures from all directions and urged policyholders to look at what their new could be premium and compare their options.³

“Around 90% we surveyed told us they’re concerned about this upcoming cost increase, regardless of the amount,” Sophie said.

“There’s also a lack of awareness about how it all works, with 38% of respondents unsure when the changes would come into effect.”

Sophie added that we need to take this bad news and take some action, because there could be savings to be had when you shop around.

“Around a one in four people say they will shop around to see if there’s a cheaper health policy, or one that offers them better value for money,” she said.

“It’s a great start but we’d love that number to be higher, and this should be a wake-up call. We hear from too many people who roll over each year without checking whether their policy still suits their needs or their budget.”

Sophie explained that this year’s average increase is exactly that – an average, with some funds going up by more and others a lot less.”

According to iSelect analysis our 2025 sales data, this average 4.41% increase could add the following to an annual health insurance bill:

Type	2025 Extras Cover Only Average Cost	2025 Hospital Cover Only	2025 Hospital & Extras Combined Cover	2025 Total average cost	2026 average extra cost based on average industry increase
Couple	$1,371	$4,695	$6,053	$5,259	+$231.92
Family	$1,514	$3,617	$5,287	$4,622	+$203.83
Single	$677	$2,310	$2,800	$2,342	+$103.28
Single Parent	$1,242	$2,861	$4,202	$3,397	+$149.81
Average Total	$994	$3,067	$4,196	$3,521	+$155.29

*Average costs are based on policies purchased via iSelect between 1 January and 31 December 2025. Figures include Lifetime Health Cover loading and age-based discounts an exclude any government rebate/s.

Despite rising premiums, Sophie said a suitable level of health insurance could still provide strong value for Aussies who want more of a say in how and when their care is delivered.

“Extra peace of mind dominated the reasons why Aussies said they have health insurance (54%) according to the study. It can also offer greater choice or more timely care,” Sophie said.

“The Australian Medical Association (AMA) recently highlighted the health system is managing an ageing population, changing disease patterns and increasingly complex health conditions.”⁴

“We know families are doing it tough financially, but if the last few years have taught us anything, it’s that you can’t put a price on your health,” Sophie said.

“Health insurance can be confusing, but comparison services like iSelect* can assist you with finding cover that suits you and your family’s needs, circumstances and budget by comparing your current policy against other options from their range of policies and providers,”

“If you do decide to switch, they’ll help you take care of the whole process, saving you time and effort.”

iSelect’s top tips for finding suitable private health insurance

1. Review your policy regularly – Health needs and financial circumstances change throughout our lives. Ask yourself “what do I need to be covered for?”. Review your policy to make sure you’re not paying for things you don’t need and that you’re covered for the things you do.

2. Offers, deals and freebies – Some funds may be offering incentives around certain times of the year and it could be a good idea to shop around and take advantage of any deals and offers! Remember though, a good deal doesn’t necessarily mean the cheapest. Make sure the policy is suited to your needs.

3. The extras – There is a wide variation between funds on what services are offered and what you’ll get back as rebates under extras cover. Ask yourself if you even need extras. You could consider flexible products that combine your separate extras limits into a single annual limit for you to use across different services.

4. Know your rights – Remember that any hospital benefit waiting periods you’ve already served will be protected by law if you switch to an equivalent or lower level or hospital cover. Knowing this, you can switch with confidence.

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