What you need to know before the April 1 health insurance premium rise

55 per cent of Australians have health insurance. Do you?

Rising healthcare costs have put pressure on private health insurers* to increase premiums. At a time when the cost of living is a pressing concern for many Australians, particularly those over 60 who are often on fixed incomes, the prospect of rising health insurance premiums* can be particularly daunting.

However, there's some potentially good news* on the horizon that could ease this financial burden.



The government has drawn a line, rejecting the health insurance industry's proposal for a significant increase in premiums, which could have seen rates rise by as much as 6 per cent. This would have marked the largest hike in at least six years and added additional strain to household budgets already stretched thin by inflation and other economic pressures.

By rejecting the proposed 6 per cent hike, Health Minister Mark Butler hopes to ease the cost of living pressures and ensure health insurance remains affordable.


Industry average annual health insurance premium increase (1997-2023) (1).jpg
What sort of increase can we expect? Image Credit: SDC



But this isn’t yet set in stone, which is why we recommend comparing your health insurance options*: whether you’re already covered or not. The April 1 premium increase is fast approaching, and now is the time to act.



Experts estimate over a million Australians have taken up cover since 2020 due to factors like long public hospital wait times, with 55 per cent of Australians now holding health insurance cover. But large premium hikes risk pricing some out of the system.

If you don’t have health insurance* yet, what are you missing out on?

Here’s a short list of private patient costs that Medicare doesn’t cover*:
  • Hospital accommodation
  • Operating theatre fees
  • Recovery room fees
  • Inpatient services (e.g. physiotherapy, etc.)
  • Choice of doctor/specialist
  • Choice of a shared or private room
  • Private ambulances
  • Dental surgery

Health insurance delivers the highest return compared to other forms of insurance, with 86 cents in every dollar spent on premiums going back to members in benefits*.



Expected price hike: What do we know?

Private Healthcare Australia CEO Dr Rachel David said any approved premium rise for 2024 is likely to fall well short of other types of insurance, such as home and car insurance (14 per cent rise) and electricity (13 per cent rise).

According to Dr David, ‘Health funds are working closely with the Federal Government to keep health insurance premiums as low as possible in 2024.’

‘The Federal Government, the Department of Health, and the Australian Prudential Regulation Authority are rightly subjecting health fund pricing to detailed scrutiny and negotiating to get premiums as low as possible.’



So, what can you do?


Why we trust Compare Club*

They’re 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.

*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!
 
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I am 82years old have been with HBF for a long time, and its worth being in it, over the years i have had a few ops etc and found it is worth while being in it, I have had my moneys worth, one good thing about it, is if you go into hosp you can either have a two patient room, or have your own room, where in public hosp you have to share with a few people, and men and women patients together which I would hate to do.
 
Many, many years ago the govt set out to get more people into private health insurance, and Medibank Private was created with very attractive fees. I signed up my husband and myself, and made absolutely sure I paid all premiums on time. I benefitted from this cover a couple of times when I had to undergo surgery and hospital stays. Fast fwd many years, and after 50 years of marriage I was in divorce proceedings. I went to Medibank and asked them if they could split the membership into the 2 persons named on the card. They noted that my husbands name was on top, with the No.1 along side of it, and mine was second, numbered 2. I was told that the person who was numbered 1. could keep the cover, but I as No.2, would have to take out separate private health cover. I shopped around, and found that cover for myself, at the same level, would cost 3 times as much as what I had been paying for the both of us. Of course my husband was quite happy with this arrangement, but I was on a DSP, and there was no way in the world I could afford this cost ........... so, I am without private health cover.
 
I have friends who happily admit they are not short of a $ or 2, do not have Private Health cover & complain about the wait time to see a Specialist at a Public Hospital. Friends, you can't have it both ways!

My wife & l, both 72, on Pensions, no Superannuation, struggling like many others in our situation but have to date, managed to keep our HBF going, but that could all change with further increases. Having this cover of course doesn't guarantee no out of pocket expenses while Specialists are able to set high fees & Health Funds do not give reasonable rebates on these & every other costs including dental. My wife & l have found this to be so in less than 2 months of 2024. Any 'savings for a rainy day' are soon gobbled up by gap fees.

ALL THIS WHILE THE GOVERNMENT SITS ON THEIR HANDS BECAUSE POLITICIANS DON'T HAVE OUR PROBLEMS........ BUT STILL WANT OUR VOTES @ ELECTION TIME.

A BIT OF ADVICE POLLIES:- SCRATCH MY BACK & I'LL SCRATCH YOURS.
 
I have Private health insurance and have had the misfortune to have been hospitalised 5 or 6 times in the past 7 or 8 years. Each time the ambulance has taken me to the public hospital without any direction from myself. I live on the Sunshine Coast and have the luxury of having the private and public hospitals situated adjacently but have always elected to use the public hospital as I have found the duty of care to be second to none. Because I have my private health cover I assign my hospitalisation cover over to the public hospital who pay my excess (each year) which they use for within the hospital and it does not affect their funding. Quite happy to help and do this as I lose nothing and it is a win/win situation for me especially as if I had to go the private hospital in that same year, my cover would still be there and I would have to pay no excess as it is only payable once each year. Need to mention that for my mid level cover Hospital + Extras I pay significantly less per day than the figure you quote here regularly
 
If they don’t get the price hike they just reduce the amount of services, for which they don’t need permission. Your list includes hospital accommodation costs. These are not incurred when you are at a public hospital. Private patients can be in a bed next to a public patient receiving the same nursing without paying insurance.
 
  • Haha
Reactions: Shane O'Neill
Many, many years ago the govt set out to get more people into private health insurance, and Medibank Private was created with very attractive fees. I signed up my husband and myself, and made absolutely sure I paid all premiums on time. I benefitted from this cover a couple of times when I had to undergo surgery and hospital stays. Fast fwd many years, and after 50 years of marriage I was in divorce proceedings. I went to Medibank and asked them if they could split the membership into the 2 persons named on the card. They noted that my husbands name was on top, with the No.1 along side of it, and mine was second, numbered 2. I was told that the person who was numbered 1. could keep the cover, but I as No.2, would have to take out separate private health cover. I shopped around, and found that cover for myself, at the same level, would cost 3 times as much as what I had been paying for the both of us. Of course my husband was quite happy with this arrangement, but I was on a DSP, and there was no way in the world I could afford this cost ........... so, I am without private health cover.
You must be spewing!!
 
After 57 years of having top hospital and full extras, I have decided on a new plan. This has come about because all major dental has been done and there's not much desire on my part to want a private room in a hospital and if I have an accident and break something, then someone will fix me up.

I have now decided to cancel the lot, with the exception of Ambo cover for $40 per annum. The only time I have used private health insurance in the past is for optical and dental. Never been in hospital since having my tonsils out at age 8 and I don't have plans for elective surgery at this point in time.

What I intend to do is every 3 months is put aside the $865 premium into a separate bank account and use it to pay for the Dental Hygienist once a year and new glasses every year or two. I figure that will cover all and leave a fair whack over for any hospital fee stuff that will probably arise as the years advance.

I don't regret the 57 years of premiums as I only stopped working at 72 and it has served many of the family over the years.

Another reason for virtually opting out of the private health system is a belief that despite the number of corporate players in the game, genuine competition and productivity gains seem absent from the field and I'm not one to pay the wages and bonuses for corporate executives that are not trying hard enough.
 
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Reactions: Squizzy1
I am 82years old have been with HBF for a long time, and its worth being in it, over the years i have had a few ops etc and found it is worth while being in it, I have had my moneys worth, one good thing about it, is if you go into hosp you can either have a two patient room, or have your own room, where in public hosp you have to share with a few people, and men and women patients together which I would hate to do.
They are the mongrels that I ditched and reduced my month premiums by over 50%
 
Electricity prices.... no one comes within a bulls roar of my rates. The guy at Select said I had better stick with them as no one can beat my rates
 
Before my husband passed had private health but when he got sick a lot of things we didn't get compensated on after paying for years with no claims. When he passed I stopped paying and used public health. I've never had any problems excellent care and follow ups. I do have extras just minimal for dental would never go private health again
 
Before my husband passed had private health but when he got sick a lot of things we didn't get compensated on after paying for years with no claims. When he passed I stopped paying and used public health. I've never had any problems excellent care and follow ups. I do have extras just minimal for dental would never go private health again
Tha's my next step.
 
I have friends who happily admit they are not short of a $ or 2, do not have Private Health cover & complain about the wait time to see a Specialist at a Public Hospital. Friends, you can't have it both ways!

My wife & l, both 72, on Pensions, no Superannuation, struggling like many others in our situation but have to date, managed to keep our HBF going, but that could all change with further increases. Having this cover of course doesn't guarantee no out of pocket expenses while Specialists are able to set high fees & Health Funds do not give reasonable rebates on these & every other costs including dental. My wife & l have found this to be so in less than 2 months of 2024. Any 'savings for a rainy day' are soon gobbled up by gap fees.

ALL THIS WHILE THE GOVERNMENT SITS ON THEIR HANDS BECAUSE POLITICIANS DON'T HAVE OUR PROBLEMS........ BUT STILL WANT OUR VOTES @ ELECTION TIME.

A BIT OF ADVICE POLLIES:- SCRATCH MY BACK & I'LL SCRATCH YOURS.
Scratch my back till I am satisfied, only then will I scratch yours?
 
Well private versus public the government of the day Labor introduced Medicare for all Well fast forward everytime the Liberal government get in they dismantled it piece by piece and promote private health insurance and pump billions into private and less into public why because it's not their problem if they (Liberal government)would have everyone paying exorbitant prices for health care and as for the private sector they can charge what they like and the fool's will pay I've had a hernia repaired out of pocket expense $200 for a visit to the surgeon to have a look and book surgery at the local public hospital operation cost nill, care excellent, after surgery care cost nill yes I had to wait in line big deal private health insurance stick where the sun don't shine making others rich
 
If butler is involved, don't hold your breath. I wouldn't trust him as far as I could kick him. He and his idiot boss created the cost of health problem and now he is trying to look like the hero in lowering costs. Something about an election looming?
 
I am 82years old have been with HBF for a long time, and its worth being in it, over the years i have had a few ops etc and found it is worth while being in it, I have had my moneys worth, one good thing about it, is if you go into hosp you can either have a two patient room, or have your own room, where in public hosp you have to share with a few people, and men and women patients together which I would hate to do.
Like you Jan I have been in HBF since 1974 (Now 75 yrs old) and my mum since 1981 (now 100). She has been in hospital twice already this year. Own room etc. The last thing I would give away is my private health insurance.
 
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I rang compare club, what a waste of time. Did my own ringing around, still didn't find a company which I could now afford.:(
Would'nt touch COMPARE CLUB with a 10" bargepole... the people that work there are paid commission...... need I say more.....
 
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Reactions: Macarj and Liz

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