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Health Insurance Rate Rise: What’s The Damage?

Announcement posted by Alternative Media 19 Dec 2018

Breaking: Private health insurance premiums will rise by 3.25 percent from April 1 next year

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Press Release

For Immediate Release


Contact: Maddison Dwyer

Level 5, 724-728 George Street, Haymarket

Sydney, NSW 2000

Phone: 0404313244

Email: maddison.dwyer@alternativemedia.com.au

Date: December 19, 2018


Sydney, New South Wales, December 19 2019. Private health insurance premiums will rise by 3.25 percent from April 1 next year, the lowest annual increase since 2001.


Regardless of the ‘low’ increase, it is still an increase, meaning a single person will pay an average of $1.14 extra per week with families paying $2.35 more. In addition to the rate rise, an attempt to make health cover more accessible will take place, with new bands of Gold, Silver, Bronze and Basic product tiers to be implemented for hospital insurance products. Furthermore, some health insurers, including nib, will be introducing discounts of up to 10 percent for members aged 18 to 29. These discounted offers will be available for both new and existing members.


It’s no secret Australians have been lowering their health insurance policies, or abandoning them all together considering the increases we have seen in the past decade. A review conducted by the Australian Competition and Consumer Commission found more Australians are downgrading or dumping their private health insurance due to rising premiums. Andrew Davis, CEO of Health Insurance Comparison and Former Chair of the Private Health Insurance Intermediaries Association says “you are less likely to scrap (health insurance) if you compare and discover the best policy for you, rather than paying for something you don’t need”. According to Davis, the most common customer seen by Health Insurance Comparison are “individuals who are paying for a higher level of cover than necessary”. Davis stresses the importance of “comparing your health insurance options before you lower your policy or abandon it altogether”.


It isn’t only individuals with private health insurance who are concerned about the increase in rates. Labor has shutdown the federal government for giving health insurers the A-OK to lift premiums. Catherine King, Shadow Minister for Health and Medicare, said the above-average increase will be a major blow to family budgets and only push more people to abandon their private health insurance. Consequently, Labour has vowed to cap health insurance premiums to only 2% if it wins the next federal election due to take place in May.



Health Insurance Comparison gives you the low down on all things relevant to Australian Health Insurance. Whether you’re just trying to get an idea of the market in general or you have a specific policy in mind, we’ll help you find what you’re looking for from our panel of Australian funds. We provide you with the tools and knowledge you’ll need to thoroughly and decisively compare health insurance policies. For more information, visit healthinsurancecomparison.com.au.