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2017 Health Insurance Rate Rise

When does the rate rise happen?

The increase usually takes effect on 1 April each year.

How much have health insurance premiums increased in the past?

Over the last 8 years, average health insurance premiums have increased a total of 54.6%, this year the average premium rate rise will be 4.84%.

Average Premium 2010 - 2017

2015 data is a sample of Choosewell’s customer base. Data for years 2010 – 2014 and 2016 is the 2015 data with each previous year’s average premium increase applied to reflect premium grown for the period 2010 – 2015 and 2016 – 2017. The data does not include any reduction to the Australian Government Rebate on private health insurance – which also adds to higher premium payments.

Why do health insurance premiums increase each year?

When the cost of health care services increase, health insurers must increase their benefits to keep you covered. And because we’re living longer, we’re claiming for more services over a longer period. These higher benefit payouts help push premiums up. Learn more.

How is the health insurance rate rise governed?

The Private Health Insurance Act 2007 requires health funds to submit details of proposed premium increases to the Minister for Health before they can increase premiums on any of their policies. Funds must provide detailed financial information as well as cost and benefit projections to justify their proposed premium increase. Learn more.

How do I know if my health fund has increased their health insurance premiums?

Your health fund must notify you in writing during March if your premium will be increasing from 1 April.

How significant are the rate rises and how are they affecting my premium?

It’s dependent on your financial situation and whether you’re comfortable paying a higher premium for the same policy. For example – If you took out a family policy in January 2014 with annual repayments of $2,800 and your payments increased by the average 6.2% in April 2014, you’d then be paying $2,973 for the same cover.

If you stayed on the same cover and your payments increased by the average 6.18% in 2015 then you’d be paying $3,157. In 2016 the average increase was 5.59%, taking annual repayments from $2,800 in 2014 to $3,333 in 2016. In 2017 the average price for health insurance will increase by 4.84% taking this total to $3494. That’s a total increase of $694 for the same cover over four years. With increasing competition in the health insurance industry it’s possible that you could now find better value cover at a more competitive price.

Rate Rise Example 2017

What are my options?

Understanding the complexities of private health insurance as well as the rate rise can be confusing and extremely time consuming. With thousands of products in the market it can be hard for you to find the cover that best suits your needs. With access to a number of leading funds and hundreds of health insurance policies, Choosewell can put your curiosity at ease by taking the hassle out of your search (we’ll do the running around for you).

Have a question about the impending health insurance rate rise or need help submitting your information?

Give us a call on 1800 808 026 or organise a call back.

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