Time to read : 2 Minutes
We’re one day out from the final set of premium increases in what has been a very strange year for the health insurance industry – and this one is set to affect the majority of people who hold health insurance.
🤓 Three of Australia’s four largest health funds – Bupa, HCF, and nib – are set to put up premiums on November 1 by an average of 2.85%.
✋ Medibank and ahm would have joined them, but opted to delay their premium increase for a second time in light of their recent customer data breach. They’ll now put up prices in January.
Does it add up? Anybody with a fund that’s delayed their increase until November will have saved about $60 on their premiums this year.
But for some age groups – such as a family policy where the parents are in their mid-to-late 50s, prices could rise by an average of $173*.
2022’s health increase premium increases: what you need to know.
There’s been a lot of changes to health insurance this year – and that could continue into 2023, making it increasingly confusing for customers to compare like with like.
The last three months will have seen at least one health fund a month put up their premiums.
Our team estimates that Latrobe, who increased premiums on October 1, have had the highest rise of any insurer in the spring. Their 3.41% average increase would add an average of $196 onto a retired couple’s policy*.
The later a fund puts up their premiums in the year, the more likely it is that their customers will face a second increase in less than six months – assuming insurers opt not to delay the increase again. Australian Unity have already stated that they won’t put up their prices on April 1 2023.
Current price rises shouldn’t be confused with the refunds many health funds are giving customers at the moment. That’s the insurers acknowledging that their members weren’t able to use their cover during Covid lockdowns.
The good news: the changes to extended family cover which allow adults in their late twenties to stay on the family policy until they’re 31 do seem to be delivering major savings.
💰Compare Club’s team saw one person save $1,100 last week by moving two adult children back onto their family cover.
The bottom line:
The health insurance industry is still finding its “new normal” after the pandemic, although it has seen the number of overall policies increase in the past 12 months.
The next date to keep an eye on is December 23. That’s when the government generally releases the following year’s premium increases.
We should see what impact that cost of living crisis will have on health insurance next March, when customers start receiving letters informing them of the latest increase.
It’s unlikely that Australian Unity will be the only fund that delays their increase in 2023. If Medibank goes ahead with increasing prices in January, will they really want to pass on another premium rise less than three months later?
Go deeper:
2022 price rises: health insurance expert Eli Boroda on why this year’s premium increase is so confusing for customers.
🫰Big savings: how much families with children in their 20s could save by taking out an extended family policy.
🧮 How much? Calculate how much your premiums may have gone up by this year.
Transparency disclaimer: We calculated these numbers based on the average value of a policy Compare Club seels to difference ages and life stages and then applied an average rate rise figure. In the case of the $173 increase, that’s applying Bupa’s average 2022 premium increase to the average policy Compare Club has sold to families aged 55-64 this year.
