Media Release

More than a quarter of policyholders can’t afford to pay more for cover,
according to new research¹Source: iSelect commissioned i-Link Research to conduct a national online survey between 15th Feb to 22nd Feb 2024. The sample is n=1,000 Australians 18+ years, with data weighted to represent the population by age, state and gender, and is representative of all Australian adults 18+

Aussies with private health insurance are about to experience another cost-of-living blow, with the price of health cover rising by an average of 3.03 per cent from April 1.²Source: Private Health Insurance – List of historical premium price changes by insurer – 1997 to 2022

According to iSelect sales data, this year’s average price rise could see singles paying around $71 extra annually, while families could be shelling out around $147 more per year for cover.³Source: Average dollar figure increase is based on iSelect sales data from 1 January 2023 until 31 December 2023, including Lifetime Health Cover loading but excluding any rebate

Sophie Ryan, iSelect spokesperson, said research commissioned by the comparison service revealed more than a quarter (27 per cent) of Aussies surveyed with health insurance say they wouldn’t be able to afford to pay any more for cover in 2024.⁴Source: iSelect commissioned i-Link Research to conduct a national online survey between 15th Feb to 22nd Feb 2024. The sample is n=1,000 Australians 18+ years, with data weighted to represent the population by age, state and gender, and is representative of all Australian adults 18+

“Aussies are already feeling the pinch, so it’s understandable this latest price increase is going to be a tough pill to swallow,” Sophie said.

“This year’s average health insurance price increase is the highest since 2019, coming at a time when other insurance products are also rising, such as home, contents and car, which soared 16.2 per cent last year.”⁵Source: Consumer Price Index, Australia, December Quarter 2023 | Australian Bureau of Statistics (abs.gov.au)

Sophie added that while price increases proposed by some health funds were initially rejected by the Federal Health Minister, any increase is still an increase, especially when you combine it with other cost hikes.

“3.03 per cent is an average only, not all policies are increasing by the same amount. Some will go up by more,” Sophie said.

“If you’re unsure if your policy price is rising on April 1 or by how much, now is the time to take back control and find out if you could switch and save.”

“Our research found that around a third of Aussies surveyed (32 per cent) with private health insurance say they’ll stick with their current cover or won’t take any action if they’re advised of a policy price increase.”⁶Source: iSelect commissioned i-Link Research to conduct a national online survey between 15th Feb to 22nd Feb 2024. The sample is n=1,000 Australians 18+ years, with data weighted to represent the population by age, state and gender, and is representative of all Australian adults 18+

“Comparing your policy and provider against others and switching for a better deal can be a simple and effective way to save money,” Sophie said.

“In fact, the study revealed that 75 per cent of policyholders surveyed who switched their health plan and/or provider within the last two years saved money.”⁷Source: iSelect commissioned i-Link Research to conduct a national online survey between 15th Feb to 22nd Feb 2024. The sample is n=1,000 Australians 18+ years, with data weighted to represent the population by age, state and gender, and is representative of all Australian adults 18+

“Most (70 per cent) who switched within the last two years say they’re saving at least $100 a year, while 46 per cent are saving at least $200 and 23 per cent are saving at least $500.”⁸Source: iSelect commissioned i-Link Research to conduct a national online survey between 15th Feb to 22nd Feb 2024. The sample is n=1,000 Australians 18+ years, with data weighted to represent the population by age, state and gender, and is representative of all Australian adults 18+

Sophie explained that while there could be significant savings to be found by switching, making sure your policy suits your needs is also key, especially with more than half of Aussie policyholders surveyed (57 per cent) admitting that they haven’t actively reviewed and compared their policy to make sure it meets their current needs in more than 12 months, or never have.⁹Source: iSelect commissioned i-Link Research to conduct a national online survey between 15th Feb to 22nd Feb 2024. The sample is n=1,000 Australians 18+ years, with data weighted to represent the population by age, state and gender, and is representative of all Australian adults 18+

“We realise reviewing health insurance can seem overwhelming, which is why a comparison service such as iSelect can help. iSelect’s health insurance comparison experts have been helping Aussies save time and effort comparing their insurance policies for more than 20 years,” Sophie said.

“Along with helping you understand the 2024 health insurance price rises, they can also assist in finding cover that suits you and your family’s needs and budget by comparing your current policy against other options from their range of policies and providers.”

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