iSelect
search-icon
Phone 13 19 20
Today: 8am to 8pm(AET)

Media Release

Millions of Australians may be facing cost hike

Some of the country’s biggest health funds to raise prices on October 1

Millions of Aussies with private health insurance could soon be hit with yet another cost-of-living increase, as some of the country’s biggest health funds increase their prices from October 1.1Source:  Tab 5, cells E13, J13, L13, X13 of Operations of Private Health Insurers Annual Report data 2021-22.xlsx (live.com) 

To help ease financial pressures, some health funds delayed their annual premium increase in 2023, but unfortunately that financial relief is about to come to an end for around 5.5 million Aussies (according to health fund membership data from Bupa, nib, GMHBA/Frank & Defence Health for the 2021-22 financial year).2Source:  Tab 5, cells E13, J13, L13, X13 of Operations of Private Health Insurers Annual Report data 2021-22.xlsx (live.com) 

Sophie Ryan, iSelect spokesperson, said policyholders of those funds (Bupa, nib, GMHBA/Frank & Defence Health – which combined hold almost 40% of the market share) could see their premiums go up by as much as 3.48%.3Sources: Market share, Page 17 of  State of the Health Funds Report 2022 (ombudsman.gov.au) & List of historical premium price changes by insurer for 2023 UPDATED.xlsx (health.gov.au)

“This year’s average premium increase across all funds is 2.90%, or around an extra $134 for families and $60 for singles to part with annually,” Sophie said.4Source: Based on weekly calculations included in Minister’s media release (at https://www.health.gov.au/ministers/the-hon-mark-butler-mp/media/annual-private-health-insurance-premium-rise?language=en) multiplied by 52 weeks to reach an annualised figure   

“We know every dollar counts right now as many households experience significant financial pressure with price hikes across the board, including consecutive interest rate increases.”

Sophie said funds are required to let their members know in advance exactly when their policy will be increasing, and how much more they’ll be paying. 

“Whether their fund increased their prices earlier in the year, or are about to, Aussies should compare their health cover now to see if they could switch and save.”

A recent i-Link Research survey found that of the Aussies who switched their health insurance plan and/or provider within the last two years, most (87%), either saved money or found better value.5Source: Tab 5, cells E13, J13, L13, X13 of Operations of Private Health Insurers Annual Report data 2021-22.xlsx (live.com) 

“Of those policyholders surveyed who said they saved money by switching, we calculated the average amount they saved is $448.80, which they’re keeping in their back pocket as a result,” Sophie added.6Source: Tab 5, cells E13, J13, L13, X13 of Operations of Private Health Insurers Annual Report data 2021-22.xlsx (live.com) 

Sophie added that the study also found that most Aussies surveyed (70%) say they have never switched or haven’t switched their health insurance plan and/or provider for more than two years.7Source: Tab 5, cells E13, J13, L13, X13 of Operations of Private Health Insurers Annual Report data 2021-22.xlsx (live.com) 

“On top of annual premium increases, if Aussies don’t take the time to regularly review their cover, their plan may no longer be suited to their health or financial circumstances which change throughout our lives,” Sophie said.

“They could be wasting time paying for expensive or outdated cover, and no one wants to be doing that at any time, let alone during the current cost-of-living crisis. If it’s been a few years since they last reviewed their cover, now is the time to see if they can find a better deal.”

Sophie added that it’s clear Aussies still value the peace of mind that comes with having private cover, with over 850,000 Aussies joining a fund since the beginning of 2020.8Source: PHA-Media-Release-865000-Australians-flock-to-PHI-but-Government-must-act-to-keep-premiums-affordable-24May2023.pdf (privatehealthcareaustralia.org.au)

“If they’re worried about the cost for their premiums, Aussies should consider seeing if there’s a more affordable option out there before cancelling their cover,” Sophie said.

“We know it can be confusing and we understand that everyone’s got better things to do with their time than spend hours comparing different health insurance policies, but a comparison service such as iSelect* can do the hard work for you.”

“iSelect can compare your current policy against a range of other policies and providers* to see if you can find one better suited to your needs and budget and, if you do decide to switch, they’ll help you take care of the whole process, saving 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 at certain times of the year. Now could be a good time 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 of hospital cover? Yes, it’s true!    

-ENDS-

For media enquiries, please contact:

Sophie Ryan

Public Relations Manager

0437 028 104

[email protected]

Sophie is our Public Relations Manager and an experienced journalist who is passionate about making Aussies’ lives easier by saving them time, effort, and money.

As an accomplished media spokesperson and iSelect Comparison Expert, Sophie frequently appears on leading news and public affairs programs, including 7NEWS, Sunrise, and 9News, sharing commentary and research.

She also regularly writes articles for popular websites and publications on various personal finance topics, including insurance and utilities.

Latest media releases

→ Go to Media Centre

About

At iSelect, we’re passionate about making Aussies’ lives easier by saving them time, effort and money. We are Australia’s go-to destination for comparison across insurance, utilities and personal finance products made available from our range of providers. Our service is provided at no cost to the customer.

iSelect does not compare all products in the market. The availability of products iSelect compare may change from time to time. Not all products made available from iSelect’s providers are compared by iSelect and due to commercial arrangements, area or availability, not all products compared by iSelect will be available to all customers. Some products and special offers may only be available from iSelect’s call centre or website. Click here to view iSelect’s range of providers.