Health insurance claims on the rise, report finds

Australians are claiming on private health insurance more than ever, new data shows. 

The latest figures from APRA (Australian Prudential Regulation Authority), which regulates the health insurance industry, show that insurers paid $18.9 billion in Hospital Cover claims for the 12 months ending 31 March 2025 – an increase of 6.9%. For Extras Cover claims, insurers paid $6.6 billion over the same period – an increase of 7.4%. 

Meanwhile, as healthslips.com.au reported earlier this year, out-of-pocket costs continue to rise. Australians spent an average of $470.80 out of pocket on Hospital Cover claims in the 12 months to the end of March 2025, compared with $426.61 for the previous 12 months – an increase of 10.4%. Gaps for Extras Cover averaged $61.64, compared with $58.65 – an increase of 5.1%. 

And despite ongoing cost-of-living pressures, most Australians are keeping their health cover. The number of people with Hospital Cover has remained steady over the 12-month data period, sitting at 45.3% of the population, while Extras Cover also remained relatively unchanged at 55.1%. 

Access the full APRA report here. 

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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