Is your health insurance premium going up? Here’s what to do 

Sorry to be the bearers of bad news, but from 1 April 2024 onwards, you could be paying more for health insurance. At a time when many households are under financial pressure, this development is probably not welcome. The good news is, there are some cost-saving options available to you.  

Let’s look more closely at the health insurance premium price increases, and what you can do about it.  

Why is health insurance going up? 

Every year, health insurance companies apply to the federal government to raise their premiums on 1 April to keep their costs in line with inflation and rising demands on healthcare services. They can only raise their prices once a year. This year, the government denied the industry’s request to raise premiums by 6% – which would have been the largest increase for six years. Instead, the government approved an average increase of 3.03%, which is just above the 2023 increase of 2.9%, and the 2.7% rise in 2022. 

So will your health insurance premiums go up by 3.03% in April 1? Not necessarily. The increase is different for each insurer and policy, and is affected by the state or territory you live in. And yes, that means some increases could be higher than 3.03% – according to the ABC, some CBHS Corporate Health policyholders could be paying as much as 5.82% more from April onwards.  

Your insurer will notify you of the increase you’ll be paying, but in the meantime, here’s what you can do about it.  

Find out the average increase for your insurer. 

What to do about the price rise 

There are a few ways you can reduce the premium increase’s impact on your wallet. 

First of all, if it’s financially viable, you could prepay the next year of insurance at your current rate (contact your insurer to find out how). 

But if that’s not an option, the best thing to do is vote with your feet and look for a more affordable deal with another insurer. At healthslips.com.au, that’s easier than ever with our Calculator, which is the only way you can compare your existing policy with every single policy on the market in one go. We don’t sell insurance and we aren’t biased towards any insurer. Try it here – it’s free, and you don’t need to enter any contact details.  

You can also save money on health insurance by: 

• Paying your premiums with direct debit – some insurers offer a discount for direct debit. Ask your insurer if this is an option.  

• Separating your policy from your partner – if you’re on a couples policy and you have different healthcare needs to your partner, it might be cheaper to take out two singles policies with different tiers of coverage.  
• Choosing a higher excess (but remember, it needs to be $750 or lower if you want to avoid paying the Medicare Levy Surcharge.) 

If you’re still having difficulty paying the increased premiums, you may be able to get additional help from your insurer. 

How can I get help paying for health insurance? 

Most health insurers allow members to suspend their policies if they’re struggling financially. Usually this break is at least two months, and could be as long as two years, depending on your insurer. Of course, you won’t be able to claim for healthcare during this time, and having a suspended policy may affect your eligibility for the Medicare Levy Surcharge as well as your Lifetime Health Cover Loading. Contact your insurer to find out their process for applying to suspend health insurance.  

You can also ask your insurer if they offer any other financial arrangements, such as payment plans or temporarily deferred payments.  

How to contact your insurer.

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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