Family health cover just got more expensive – here’s how to save money

The cost of raising children continues to rise, with policies for families among the hardest hit in the latest health insurance premium increases.

Analysis by health insurance comparison site healthslips.com.au found increases to Family and Single Parent families have risen higher than policies that don’t include children.

The government announced health insurance premiums would rise by an average of 4.41% on 1 April. But our analysis found many premiums have risen significantly higher.

As healthslips.com.au reported last week, Gold and Silver tier Hospital Cover policies that include joint replacements have risen by 8.02%, compared with Basic and Basic Plus which have risen by 2.79%. That increase is significantly impacting senior Australians, who are more likely to need cover for joint replacements.

Our analysis also found relationship and family status also affected your premium increase, with Family policies increasing higher between 2025 and 2026 than households without children.

Average increase by family situation, Hospital and Combined Cover:

Family – 5.64%

Single Parent – 5.23%

Single – 4.32%

Couple – 4.23%

Source: Australian government data showing health insurance premiums on 1 April 2025 compared to 1 April 2026. Open policies, excluding corporate policies.

Although health insurance premiums have risen the highest in a decade, it’s never been easier to find a more affordable policy option. The healthslips.com.au calculator allows policyholders to check their existing policy against similar policies in Australia, comparing premiums and cover to find the best option for their household. The calculator searches every policy and every insurer in Australia, and can be used free and anonymously.

How to find a cheaper policy

One NSW mum was shocked last month to learn her Family policy would increase from $342.17 to $378.91 per month in 2026 – a 10.7% increase.

“My premiums had been going up over the past few years, but nothing like this. It was time to shop around,” she said.

She used the healthslips.com.au calculator and entered her Policy ID, found in the bottom left-hand corner of the Private Health Information Statement emailed by her insurer.

“There were a number of policy options shown that were at least as good and cheaper than my cover,” she said. “I had another look to see if there was something I didn’t need in my Extras Cover in order to get a cheaper price, and I removed the filter for psychology benefits as I had not used this on my current cover. This brought up some much cheaper policies.”

She found a Family policy from a different insurer which will save her $54.91 a month. Her new policy offers the same level of Hospital Cover as her existing Combined Hospital and Extras Cover Bronze tier cover, so she will not need to serve waiting periods again, and also provides higher claim limits for physio and remedial massage on Extras.

“I can still get no out-of-pocket costs on dental check-ups and cleans if I go to an approved provider,” she said.

“The healthslips.com.au calculator was a quick and easy way to find a cheaper policy with better cover, and now I’m saving more than $658 a year.”

Media: for more health insurance premium insights from healthslips.com.au’s analysis, contact sophie.bartho@healthslips.com.au.

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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