Australians Face Steep Increases in Health Insurance Premiums
Despite government approval for a 3.03% average annual increase in health insurance premiums, many Australians are experiencing significantly higher costs. Consumer advocacy group Choice found that some insurers have raised premiums by as much as five times the approved rate, leaving policyholders with "substantially higher monthly costs."
This situation has led to financial strain for many Australians, with one in seven households struggling to pay their health insurance. The average cost of private health insurance is around $160 per month for a single person, or $1,920 a year. As a result, an estimated 354,000 Australians have cancelled their health cover, while about 590,000 others have switched to a different provider.
Even among providers advertising lower than average price increases, individual policy prices have increased significantly. For example, HCF's Hospital Gold policy with $250 excess increased by 15%, while HBF Gold policyholders also saw a 15% rise.
Insurance experts attribute these increases to rising healthcare costs, an aging population, and the increasing complexity of medical treatments. Private Healthcare Australia's chief executive Rachel David notes that premium increases are "a long way below expectations" amid the rate of inflation. However, many Australians are struggling to keep up with the rising costs, leading to difficult choices about their health coverage.