Protect Your Wallet from the Biggest Health Insurance Spike in Years
- Replies 21
We at the SDC have been anxiously awaiting news of the 2024 health insurance premium rise. But with the industry announcements on Tuesday, March 5, we can see why they held off sharing a figure for as long as possible: it’s bad news.With the latest developments shaking the ground for nearly half of the Australian population, it is critical to understand the implications of the most significant jump in health insurance premiums in the last five years. This health insurance premium rise will have a profound effect on the affordability of health care for many Australian seniors.
Starting April 1, as approved by the Albanese government, industry average premiums will surge by 3.03 per cent, impacting approximately 15 million Australians who rely on private health insurance for their medical needs.
Let's explore what this means for your wallet.
Say you're currently paying a monthly premium of $300 for your health insurance; a 3.03 per cent increase represents an additional $9.09 monthly or nearly $109.08 annually. This hike, although seemingly modest per month, adds up over time, and on a fixed income, every dollar counts*.
Is your premium going up? Chances are, it is. Image Credit: Shutterstock
For many Australians, this price increase will price them out of private health insurance cover. If this is a price increase you think you cannot afford, try comparing and switching health insurers before dropping your cover completely*. You might just be surprised at how much cheaper you could be getting your health insurance with a different provider.
In the case of private health insurance, loyalty does not pay. In fact, insurers originally eyed hikes up to a steep 6 per cent.
This move was curbed by Health Minister Mark Butler. His refusal to 'tick and flick' the health insurers' proposals without scrutiny was an attempt to balance industry sustainability with consumer protection, leading to a trimmed-down increase of 3.03 per cent on average.
Historically, premium hikes have been more modest, with previous years seeing an increase of 2.7 to 2.9 per cent. This year, it has been confirmed that some insurers are increasing their premiums by as much as 5.82 per cent, 4.51 per cent and 4.1 per cent, which is above inflation (4.1 per cent), wage growth (4.2 per cent), and pension growth.
Notably, an investigation from the competition watchdog underscored that net profits for the health insurance industry vaulted by a remarkable 110 per cent to $2.19 billion in the 2023 fiscal year, compared with $1 billion the year prior. This uptick in profit has raised questions about the necessity and magnitude of premium increases.
These impending changes necessitate action. Don’t get stuck paying more when you can compare and save today*.
As savvy consumers, it's crucial to review your health insurance policies. Scrutinise your cover, compare your options*, and consider if your current plan delivers the best value for your circumstances. With premiums on the rise, it's also important to check if you're making full use of your entitlements, such as government rebates, and to be aware of any potential discounts or savings available.
But there’s no need to face these increases alone. There are experts who are ready and waiting to help you get a better deal. Our pick? Compare Club*.
Compare Club are one of our long-term partners* with whom we have personally compared health insurers! You can read about Maddie’s experience here*.
The team at Compare Club* will make sure you have the health cover you need while paying a price you’re comfortable with*.
You get the peace of mind that comes with working with trusted professionals who have the years of experience* needed to navigate the complicated health insurance system and keep you from any further confusion.
So why not reach out to Compare Club* today and find out if you’re eligible for a better deal?
You won’t lose anything by comparing; you only stand to save*! After all, if you don’t like the quote you receive from Compare Club*, you don’t have to do anything.
With the right choices, you could keep more money in your pocket* while still getting important healthcare protections in place.
If the rising cost of health care leaves you concerned or if you have insights into navigating these challenging waters, we invite you to share your thoughts and stories in the comments below.
*Please note, members, that this is a sponsored article. All content of ours that has an asterisk next to it means we may get a commission to write an article or post a deal. We do this to assist with the costs of running the SDC. Thank you!
.png){kind=icon}
