Media Release

Aussies to pay more for Private Health Insurance in 2025

Almost a third of policyholders surveyed say they’ll have to chop or change cover, research reveals.

Another cost-of-living hike is on the way for cash-strapped Aussies, with the Federal Government confirming that the price of private health insurance will increase by an average of 3.73% in 2025.¹ Source: https://www.health.gov.au/resources/publications/average-annual-price-changes-in-private-health-insurance-premiums

While the increase is less than what some health funds initially proposed, new research from comparison service iSelect has found that any price rise will cause almost a third of policyholders (28%) to either cancel their cover, look at downgrading, or shop around for a cheaper deal.²Source: iSelect commissioned i-Link Research to conduct an online survey between 14th to 19th November 2024. The sample is n=1,545 Australians.  The data is weighted to represent the population by age, state and gender, and is representative of all Australian adults 18+.

Sophie Ryan, iSelect comparison expert, encouraged concerned Aussies to check for a better deal first, before reducing their level of cover or getting rid of it.  

“It makes sense that many Aussies with private health insurance will be questioning whether they can afford to maintain their policy, especially when you factor in other budget pressures such as higher electricity costs and interest rates,” Sophie said. 

“Private hospital cover can give you peace of mind knowing that you’ll have more choice in your care if you were to experience a health problem and can also help you avoid elective surgery waiting lists.” 

Sophie added that private health cover is an expense that too many Aussies ‘set and forget’ and run the risk of wasting money on outdated cover. 

“Our 2024 Health Pulse Report found that surveyed Aussies had been on the same policy for almost seven years on average,” Sophie explained. 

“That’s unfortunate, especially when the same survey revealed that 72% of those who did switch their policy within the previous 12 months saved money, and the estimated average of savings was $1,151.”³Source: iSelect commissioned YouGov Galaxy Pty Ltd conduct a national online survey between 15-21 July 2024. The sample is n= 1,532 Australians aged 18 years and older who have private health insurance and are the main or joint decision maker for their cover. The survey results were weighted by age, gender and region to reflect the latest ABS population estimates. 

Sophie further explained that the average 3.73% increase approved by Federal Health Minister Mark Bulter is scheduled to kick in from April 1. 

“3.73% is an industry average only, so some policies could go up by more, and others less. Don’t sit back and wait for prices to rise, get on the front foot and see if you can switch and start saving money now,” Sophie said. 

“Many customers may be able to switch to a similar level of cover with a different fund for a cheaper price, and there’s no limit to how often you can switch.” 

“iSelect has Aussie-based comparison experts who have been helping people find great health insurance deals for more than 20 years,” Sophie said.  

“They can review your current deal against our range of policies and take care of the whole process if you decide to switch, 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. Could a higher excess save you money on your premium? Generally, the higher the excess or co-payment you are willing to pay, the lower the premium. If you think it’s unlikely you’ll be admitted to hospital in the near future you could opt for a higher excess on eligible policies in exchange for lower overall premiums.

3. 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.

4. 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.

5. Know your rights – Did you know 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? Yes, it’s true!