2025 premium increase calculator

The average health insurance premium increase across all health funds in 2025 is 3.73%. However, the average increase could be higher or lower for some people.

Your exact increase will depend on your health fund and policy, so it's worth checking any communication from your insurer. The calculator above can help you get an indication of how much extra you'll be paying.

Every year, the government approves a rate increase for health insurance premiums to account for the rising cost of healthcare in Australia. There are a few factors contributing to this:

• More people are accessing more health services each year
• An ageing population and increasing rates of chronic disease are placing a bigger demand on health services
• Medical advances are often more effective but also more costly

This means paying benefits is getting more expensive for health funds each year. Most health funds pass some of these additional costs on to customers in the form of yearly premium increases.

The theory behind the annual rate rise is that it allows health funds to continue to be competitive, cover you for more services and provide more benefits.

However, the rate rise can make a serious impact on people’s finances, which is why it may be useful to compare health insurance and see if you can find a similar policy for a lower price.

The short answer is it depends. The longer answer is it depends on your health fund, your current policy and the amount they will put your premiums up by.

If you’re on a basic level of cover and a health fund that’s putting up premiums by less than the 3.73% average, you may not notice much difference.

It’s worth keeping in mind that these rate rises happen every year for most health funds. Over the course of a few years, your health insurance costs can creep up significantly while what’s contained in your policy remains largely the same.

Reviewing your policy regularly is a good idea to make sure you know how much you’re paying and what you’re covered for. And, like any purchase, shopping around can help you get the best value for money on your health insurance policy.

There are a few ways to potentially avoid a premium increase.

Firstly, some health funds will allow you to lock-in your current rate if you pay your premiums in advance before a certain time. For example, you might be able to avoid an increase if you pay 12 months upfront before 1 April 2025. Check with your health fund to see what rate protection options are available.

You might also be able to reduce your premiums by paying a higher excess or co-payment. Keep in mind, though, that this could also mean higher costs when you have to make a claim.

Last but not least, you could be able to save on your premiums by switching to a health fund that can offer you comparable cover at a lower price. This might mean going with a fund that isn’t raising their premiums this year, or choosing a policy that’s more affordable but still covers what you need.

Our health insurance comparison tool is a quick and easy way to see what options are out there and how you could be saving money. Last year we saved our customers, on average, $320 on their health insurance when they compared and switched with us.

If your health fund has notified you that your premiums are about to go up, here’s what you can do next:

• Crunch the numbers: Calculate how much your premium increase is going to cost you over the course of a year. It’s good to know this when comparing policies and premiums.
• Review your cover: While your premiums are going up, your level of cover could stay the same or even decrease. If you’re going to be paying more for less cover, it could be time to look for a better value policy.
• Check if you can lock-in a premium rate: If you’re happy with your current policy, you might be able to avoid or at least delay the increase by paying your premiums in advance. Check with your health fund to see if they offer rate protection.
• Shop around: Knowledge is power when it comes to finding a better health insurance policy for your circumstances. Use our health insurance comparison tool to see what options are out there and how you could save money.
• Talk to an expert: Getting your head wrapped around all the options out there can be tricky. Talk to one of our health insurance specialists – our goal is to find you the right policy.

The great news is the power is in your hands when it comes to choosing health insurance. There are a few things you can do to potentially get better value for money on your health insurance:

Bundle your insurance

If you’re happy with your current health fund, you might be able to save by bundling policies or choosing a policy that covers the whole family.

Shop around for a better deal

Comparing options from different health funds can help you find better value for money on a policy that suits your circumstances. Compare health insurance quotes for free or talk to one of our health insurance specialists for help in finding the right policy.

Consider switching policies

You aren’t locked in to one health insurance policy forever. Generally, you can switch at any time without incurring additional charges. If your health fund is raising premiums this year and/or decreasing your cover, it may be worth moving to a new policy.

If you have pre-existing conditions, you may not get immediate cover for what you want and will have to serve a waiting period before you can claim. If you are switching your health insurance policy to one with an equal or lesser level of cover, you will not need to re-serve waiting periods.

Learn more about pre-existing conditions and health insurance.