We are no strangers to the ever-tightening squeeze of the cost-of-living crisis.

Yet, just when we have adjusted our budgets to accommodate the latest financial challenge, another one could rear its head soon.

This change could deliver a hefty blow to our wallets, as experts warned about the 'biggest rise' Australians have seen in years.

Health insurance premiums are set to increase by 1 April.

A forecast by Compare Club predicted an annual increase of around six per cent on the said date.

This increase could lead to an average jump of $234, impacting many Australians, including those in retirement.

The predicted health insurance increase is not yet final. Image Credit: Pexels/Kaboompics.com

Compare Club's Head of Research, Kate Browne, stated that while the said hike could be a 'worst-case scenario', it's a possibility Aussies should be prepared for.

'Even if the health minister negotiates down the funds, we're still expecting a significantly bigger premium hike than last year,' Ms Browne explained.

This premium increase could mean reevaluating budgets and cutting costs elsewhere.

A separate research from Finder indicated that health insurance costs have escalated too high, some Australians have decided to abandon their coverage altogether.

One in seven Australians have struggled to afford their policy in the past year, and three per cent of Australians cancelled their cover due to financial pressures.

For retired families, the projected rise could mean shelling out an additional $369 for health insurance in 2025, totalling close to $6,000 annually.

Senior couples over 65 might face an extra $358, while young families could see their premiums increase by up to $248 per year.

Single Australians and single-parent households are not exempt from the pinch, with expected additional costs of $153 and $224, respectively.

Last year, health insurance premiums increased by 3.03 per cent—a stark contrast compared to the predicted six per cent increase.

However, it's not all doom and gloom, especially for savvy shoppers.

Ms Browne urged Australians to shop around for their health insurance to get the best possible deal.

By comparing providers and reviewing policies, families could save an average of $462 a year.

For Aussies with health insurance premiums, shopping around could see them saving between $137 to $361, depending on their family situation.

It's a proactive step that could make a world of difference in these challenging times.

With the looming increase happening in two months, it's time to review your health insurance policies.

It's time to compare prices and keep more money in your pocket, all while meeting your healthcare needs.

Key Takeaways

• Australians were warned about the possibly largest health insurance premium increase in recent years.
• Compare Club suggested that even with potential negotiations by the health minister, the six per cent rise in premiums could happen soon.
• Finder research indicated that the rising cost of health insurance led some individuals to abandon their policies.
• Consumers were encouraged to review their policies and consider swapping providers to save money while having their healthcare insurance covered.

What do you think of this looming health insurance increase? How do you prepare for these price increases? Share your opinions about this issue and money-saving tips in the comments below.

 

[Trina G]

Changing any insurance is an absolute nightmare. I know sometimes it is for the best but my recent experience in changing health insurance was an absolute nightmare where I nearly had a meltdown. It got sorted in the end but I will never do it again.

 

[Taurusgirl]

I changed my health insurance last year and although we miss out on a few things I saved over $1000 in the premium which saved us from dropping it all together and having to go on the endless waiting list. Was a 3 year wait for knee and hip replacement but only 12 months with health insurance and that was due to the waiting time. My husband only had 6 weeks wait to have his knee done as time had been served .

 

[lynstacker]

Give up your house insurance before your health insurance. I have been contributing for 40 years & didn't see the value as I barely used any of it. That changed 2 1/2 years ago.starting ith a knee replacement. 6 months ago I fractured my other leg & now have a plate and 8 screws in situ. I now need a hip replacement so am seeing the value in having it. If I was in the public system, even as a Category 2, I wouldn't be having surgery until next year at the earliest. It is getting difficult but I have to make it work. A lot of the funds don't cover joint replacements - only repairs - so switching providers is not an option

 

[Squizzy1]

It is pointless shopping around now, till the changes have been announced, and how did it go from $248rise to $358 for seniors, and what is a senior family?

 

[Squizzy1]

Sorry but to say it went up 3.03% last year is not right, my and everyone's I know went up far more than that.

 

[Jen61]

It's an absolute disgrace. It's not just health insurance my car insurance has gone up by $100 this year and each previous year for the last two years. I have made no claims with my insurer.

 

[Rotty]

Greed is the key to all increases. For years people pay to cover themselves in all manner of thing: health, car, house and content, travel. I would like to know how many actually get any benefits in return. For example I have paid for house insurance for years, I had a water leak in the ceiling. Oh that's not covered, "that's lack of Maintenance, so the insurance company informed me. So I paid for the leak to be fixed, but then the stain on the ceiling could be covered: a $1,400 odd bill, but I had to pay upfront $700 before I could claim anything. What a joke. I would say I have paid thousands over the years and no thanks for staying loyal. So I have a stain on my ceiling, small hole where the plaster broke away, and I will no doubt have to fix it myself. Why the hell do I keep paying insurance. Same as Health, I had and accident (fell down some stairs) knocked unconscious and went to hospital in an ambulance. Straight into emergency, treated etc and put into a public ward, (me (women) with three men!!!. Had private cover, but decided I wouldn't be there long. A I was treated as a public patient, I paid nothing. Why do I have private cover???? Someone is getting rich on our stupidity

 

[Trish M]

Good luck with your check up with your GP. Your article is misleading though as private health premiums are for hospital and extras. GP visits are claimed through Medicare.
The last increase in the Medicare levy was 0.5 percent in July 2014.
The levy is 2 percent of your taxable income.

 

[Janice McKay]

All I see with this increase is many people dropping out of health cover. Let's be honest, who can afford more costs on top of everything else?

 

[Squizzy1]

It's an absolute disgrace. It's not just health insurance my car insurance has gone up by $100 this year and each previous year for the last two years. I have made no claims with my insurer.

True, they are the ones driving inflation.

 

[Squizzy1]

Recently had hip job under private insurance, surgeon cost $4500 up front, the scheduled fee set is $1500, Medicare paid $1175, Health Fund paid $325, and although they say most are $500 or less out of pocket it's a lie, unless you use a surgeon who is willing to accept $1500, but you will need to pay to see him/her to find out, for me it was around $3900 for the surgery. What surprised me most was the scheduled fee was $1500 for hip surgery, when I've had a Dentist charge more for a tooth, it's unfathomable.

 

[Urlaub]

Health insurance premiums are set to rise significantly, marking the biggest increase in years. Factors like inflation, rising medical costs, and higher demand for healthcare services contribute to this surge. Many policyholders may face financial strain as they struggle to afford coverage. To mitigate the impact, consumers should compare plans, explore subsidies, and consider higher deductibles for lower monthly costs. Staying informed can help navigate these challenging changes effectively.

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[Urlaub]

The rising cost of health insurance premiums is a growing concern for many individuals and families. With one of the biggest hikes in years on the horizon, affordability and access to quality healthcare are becoming even more challenging. It's crucial to stay informed about policy changes, explore alternative plans, and advocate for reforms that prioritize consumers. Employers and policymakers must also take steps to ensure that healthcare remains accessible and sustainable for all.
crockerfinancial

 

[Urlaub]

The rising cost of health insurance premiums is a major concern, especially with one of the biggest hikes in years on the horizon. Many individuals and families are already struggling with healthcare costs, and this increase could make coverage even less affordable. Exploring alternative plans, negotiating with providers, and staying informed about policy changes can help mitigate the impact. What strategies are you considering to manage these rising costs?
crockerfinancialllc