Why are insurers putting up their premiums? 

Have you been notified by your health insurer about a premium price rise? The timing is not convenient given we’re in a cost of living crisis, but unfortunately health insurance is one of those expenses that’s likely to change every year, despite what’s happening with the economy.  

In this article, we explain why health insurance costs rise every year, and what you can do about it.  

Why is my health insurance going up? 

By law, health insurers are allowed to raise the price of policies once every year – but only up to a maximum amount approved by the federal government. Usually this increase comes into play on 1 April, but sometimes insurers delay their price rises until later in the year.  

How much is health insurance increasing on 1 April 2024?

You might be wondering why you’ll have to pay more for health insurance even if you didn’t use your policy much last year, or make any claims at all. That’s because health insurance is community rated not risk rated, which means your insurer can’t charge you more for making claims, getting older or having high health needs. However it can raise premiums across its policies to keep up with rising healthcare costs, e.g. items such as surgical tools and medical devices, due to increased numbers of chronic conditions and an ageing population. 

How can I avoid the health insurance rise? 

One option is to lock in your current rate by prepaying your health insurance for the year ahead. If you don’t have the financial means to do that, you could look for a cheaper policy that meets your needs.  

Unlike other health comparison websites, the healthslips.com.au Calculator is the only one that will show you all policies available on the market without any bias. It’s free to use, and we don’t sell insurance so you won’t have to buy anything nor enter your contact details.  

Try the healthslips.com.au Calculator.

You can also bring down the cost of health insurance by reducing your excess and paying by direct debit – get more tips in this article.

Need help paying health insurance? 

If you need help paying your health insurance, contact your insurer to ask about what financial assistance they offer. Many allow you to suspend your policy for financial reasons, and they may have other means of support available, such as payment plans.  

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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