Media Release

Yet another cost-of-living increase is on the way for millions of Aussies, with the Federal Government announcing a private health insurance price hike.

Health insurance prices are set to rise by an average of 3.03 per cent from April 1, 2024, which is higher than last year’s increase of 2.90 per cent.¹Source: Annual private health insurance premium rise | Health Portfolio Ministers | Australian Government Department of Health and Aged Care

Sophie Ryan, iSelect comparison expert said while initial price increases proposed by health funds were rejected by the Federal Health Minster, any increase is still and increase, and this announcement should prompt policyholders to review their cover to ensure they’re still getting a good deal.²Source: Health minister rejects insurers’ bids for large premium increases – ABC News

“It’s important to remember that 3.03 per cent is an industry average only, and some policies could increase by more,” Sophie said.

“Recent research commissioned by comparison service, iSelect, found that more than half of Aussies surveyed (53 per cent) describe their current financial wellbeing as ‘struggling’ or ‘just getting by’, so no doubt news of another cost increase will hit households hard.”³Source: iSelect commissioned i-Link Research to conduct a national online survey between 2 – 7 November 2023. 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+ 

“Don’t simply accept a higher premium. Now is the time to make sure you aren’t paying for things you don’t need when it comes to your health insurance and see if there’s a better deal to be had.”

Sophie explained that price rises will kick in from April 1, as health funds revert to this traditional date after some chose to delay their increases over the last two years to help relieve cost of living pressures.

“Funds are required to let their members know if, when and how much their policy is increasing and this should be your prompt to shop around and compare your policy,” Sophie said.

“It’s understandable some Aussies will be left questioning whether they can even afford to keep their health cover, but I’d encourage policyholders worried about these price increases to first make sure they’re getting good value and whether they could switch and save.”

Sophie added that having private health insurance is arguably more valuable than ever, especially with elective surgery wait times soaring to record highs across the country in 2023.⁴Source: ED wait times and surgery waiting lists soar, new data shows | Australian Medical Association (ama.com.au)

“Having private health insurance gives you peace of mind knowing that in the unfortunate event of a serious health issue covered by your policy, you will have private care,” Sophie said.

“Eligible hospital cover gives you greater choice over when and where you’ll be treated, including choice of hospital and doctor, and may provide shorter waiting times for elective surgeries covered by your policy than if you were to be treated in the public system.”

Sophie added that customers who switch won’t have to re-serve any hospital waiting periods if they change to an equal or lower level of hospital cover.

“Saving money doesn’t mean compromising your level of cover either, with many customers easing the budget pressures by switching to a similar level of cover with a different fund for a cheaper price,” Sophie said.

“We know Aussies have better things to do with their time than compare countless policies. A comparison service such as iSelect can help 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, our health insurance comparison experts can help you take care of the process, saving you time and effort.”

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