Private Health Insurance Premiums are rising… again

Even Harold cannot hide the pain of rising health insurance premiums.

We will be the first to say this was not a part of our 2020 vision, and to be frank we still aren’t seeing super clearly now that the federal government has announced that on April 1, 2020 private health insurance premiums will rise by 2.92 per cent. Even though we’re being fed the line “it’s the lowest increase in 19 years”, the increase is still nearly double the rate of inflation. Not. Happy. Jan.

Puns aside, the 2.92 per cent increase will leave singles to pay an average of 68 cents extra per week with the average family paying $1.99 more per week. To put that into perspective, families will be paying $100 more per year for health insurance—and that’s where we’re itching to lend a hand. At Compare Club, we know every dollar matters and the cost of doing nothing is simply too great to ignore. Health Minister, Greg Hunt, has even said himself, that he “encourages consumers to get the best deal for themselves and their families”.

So if 2.92 per cent is the average increase, what are the major health insurers increasing their premiums to?

  • The top four health funds—Medibank, Bupa, HCF and NIB—all had annual premium increases between 2.9 and 3.39 per cent.
  • The lowest annual increase was health insurer HBF with a rate of 1.98 per cent.
  • The highest annual increase was health insurer myOwn (MO) with a rate of 5.63 per cent.

It is super important to note however, that just because one health insurers increase was lower than another health insurer, that the ‘low increase’ health insurer isn’t necessarily the best or cheapest option. The option best suited to you depends on what your needs are as an individual, couple or family and what budget you are would like to work with. 

But really, why should you compare your options? Andrew Davis, our onsite health insurance expert and former chair of the Private Health Insurance Intermediaries Association says that “comparing in the lead up to April 1 is the best way to ensure individuals are not paying for a higher level of cover than necessary.” 

“The most common customer I see are individuals paying for cover that they don’t need, or worse, overpaying for the cover they need. I cannot stress the importance of comparing your health insurance options before you lower your policy or abandon it altogether.” 

The next step is to start with some research. There are multiple options available and a lot of information out there—and if it’s all too much, we can help you. We know fair premiums start with smart shopping, so a good place to start is to have a go at using our free health insurance quoting tool. We work with 8 trusted health funds to make sure you’re getting a fair deal and we won’t ask for your phone number up front. We also have a team of on-demand health insurance advisors who are a phone call away—but whichever way you choose, we can help you do the heavy lifting by finding the best-value quotes, specific to your needs at the most affordable prices. Seeing better? Now that’s the 2020 vision we had in mind. 

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