2023 Private Health Insurance Premium Increases

Megan Fraser Updated: 04 July 2023

If you’ve heard of the upcoming 2.9% private health insurance premium increase, you may wonder how this could impact your coverage. Over 14.4 million Australians rely on private health insurance for over $22 billion in medical benefits, making affordability and accessibility crucial. While the increase takes effect on 1 April 2023, some providers may delay it. You may want to compare the costs to determine whether your current coverage still suits your requirements.

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2023 Premium increases by insurer

  • Medibank: 2,96%
  • Bupa: 3,39%
  • NIB: 2,72%
  • HBF: 4,49%
  • Australian Unity: 3,76%
  • Teachers Health: 2,50% 
  • GMHBA: 2,33%
  • Defence Health: 3,48%
  • CBHS: 4,46%
  • AIA Health Insurance: 1,69%

Source: Health.gov.au (March 2023)

Which insurers are delaying premium increases?

Some insurers have decided to delay the annual premium increase set for 1 April 2023. These include:

  • AIA: 1 July 2023
  • Bupa: 1 July 2023
  • HCF (including RT Health): 1 September 2023
  • Medibank (including AHM): 1 June 2023
  • NIB (including Qantas Health): 1 September 2023

When do health insurance premiums increase?

Traditionally, private health insurance premiums have increased every April. Yet for the third consecutive year, several insurers have postponed their premium increases until later – with the average industry rise in 2023 being 2.9%. The exact increase will depend on your insurer and state of residence.

How do I know if my premiums will increase?

Your health fund is legally obligated to inform you of updated rates and other changes through written communication. If the increase in premiums is higher than expected, your health fund should be able to explain why it needs a greater amount of coverage under your policy.

2023 Private Health Insurance Rebates

Starting on 1 April of every year, the same day medical insurance costs go up, rebates are available to assist in relieving those expenses. Singletons and families with incomes between $90,000 and more than $280,000 qualify for these Government-funded rebates. This year’s premiums saw only a moderate increase compared to the last decade; thus, there is no need for readjusting rebate amounts.

Compare 2022 and 2023 premium increases by insurer.

Insurer2022 percentage Increase2023 percentage increase
Bupa 3.18%3.39%
Australian Unity2.73%3.76%
Teachers Health2.17%2.50%
GMHBA 3.10%2.33%
Defence Health3.33%3.48%
AIA Health Insurance2.80%1.69%

Source: Health.gov.au (March 2023)

Average increase in health cover premiums in the past decade

Source: Australian Government Department of Health (March 2023)

Why do premiums increase?

When insurers see a greater proportion of older adults, those aged 60 and over, premiums often rise since those with private insurance commonly require more pricey medical care services. These yearly price increases are essential for companies to cover costs such as growing wages for medical professionals and expensive cutting-edge technologies necessary for health care.

Common reasons for rising premiums:

Is private health insurance worth it?

When determining whether private health insurance is the right choice for you, consider your current physical condition, life stage and finances. Suppose you prefer to select your physician, receive treatment as a private patient in either public or private hospitals–including reducing wait times for operations–and require non-hospital treatments such as physiotherapy, optical care and dental visits. In that case, it may be worth investing in this form of coverage. The right cover could also help you save on the Lifetime Health Cover Loading.

How to get cheap health insurance premiums

If you find you can’t afford your increased premium, there are several ways you can keep costs more affordable:

Frequently asked questions and answers

  • How much will private health insurance premiums increase on 1 April 2023?

    The exact increase will depend on various factors, such as the insurer and the policy held by the individual. However, according to the Australian government, the average increase in private health insurance premiums for 2023 was 2.90%. It’s important to note that some policies may experience higher or lower increases than the average. Policyholders will receive a notice from their insurer before 1 April detailing any changes to their policy and associated costs.
  • How can I find out how much my premiums will increase?

    As part of their regulatory obligations, private health insurers in Australia must provide advance notice of any changes to policyholders. This includes any adjustments to premiums, typically communicated via a letter or email sent to the policyholder before 1 April. The notice will detail the new premium amount and any changes to the policy’s terms and conditions. Policyholders are encouraged to review the notice carefully and contact their insurer with any questions or concerns about the changes.
  • What can I do to lower my private health insurance premiums?

    If you’re looking to lower your private health insurance premiums, there are several strategies you can consider. One option is to switch to a different policy or insurer that offers better value or more suitable coverage for your needs. You can compare policies and premiums online or seek advice from a qualified insurance broker. Another option is to adjust your coverage levels by reducing the range of services covered, opting for a higher excess, or choosing a policy with more limited benefits. However, it’s important to carefully consider any changes to your coverage to ensure that you are still adequately protected against unexpected healthcare costs.
  • Will the government be providing any assistance to help cover the cost of the premium increase?

    The Australian government provides a private health insurance rebate to eligible policyholders to encourage Australians to take out private health coverage. The rebate is designed to help make private health insurance more affordable and accessible to all Australians. The rebate amount is calculated based on various factors, including age, income, and policy type.
  • Do I need to do anything to prepare for the premium increase?

    To prepare for a premium increase, You should review your policy and determine whether it meets your healthcare needs and budget. You may also want to consider shopping around for a better deal on private health insurance.
  • When will the next private health insurance premium increase occur?

    The private health insurance premium increase occurs annually in Australia, with adjustments made to cover the rising costs of healthcare and medical treatments. Typically, these increases take effect on 1 April each year, with policyholders receiving a notice from their insurer detailing any changes to their premium or coverage. However, this year, some insurers have decided to delay their premium increases until later on in the year.

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