Health insurance premiums rise to 8-year high 

The government has approved a 4.41% average health insurance premium rise for 2026 – the highest increase in eight years. 

Every year, health insurers must apply to the Minister for Health and Ageing to raise premiums. Last year’s average increase was 3.73%, while the 2017 average was 4.84%.  

Policyholders will be advised of their premium change over the coming weeks, with new premiums effective from 1 April. 

Private Healthcare Australia, peak body for the health insurance industry, said the increase was due to the rising costs of medical services, which rose 5% last financial year.  

“More people are using their health insurance for high-cost hospital care such as joint replacements and cancer treatment, and the cost of delivering care continues to rise,” said Private Healthcare Australia CEO Dr Rachel David. “This premium increase reflects those realities.” 

Mark Butler, Minister for Health and Ageing, said he had asked insurers to resubmit premium requests many times before approving the 4.41% average increase. 

“I expect private health insurers and hospitals to work hard to bring down costs and keep future price increases to a minimum.” 

Trudie McConnochie

Writer and Researcher

Knowledge is power – that’s the guiding principle behind everything Trudie writes, and it’s a philosophy she brings to her work at healthslips.com.au. By breaking down complex information into easy-to-understand blogs and stories, she aims to empower Australians to make the best choices and an informed decision around private health insurance.

Trudie understands firsthand some of the complexity of private health insurance having moved to Australia from New Zealand and having to navigate a vastly different public healthcare system and health insurance structure.

Trudie holds a Bachelor of Communication Studies (journalism major) from the Auckland University of Technology.

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