Private health insurance premiums are set to rise by more than 3 per cent on April 1, the biggest increase in five years.
The federal government has approved an average industry premium rise of 3.03 per cent.
However, some major insurers have confirmed prices will increase by as much as 4.1 per cent.
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For NIB customers, premiums will increase by 4.1 per cent, BUPA by 3.61 per cent, HBF 3.95 per cent and Medibank Private 3.31 per cent.
A Compare Club analysis found, with an average 4 per cent price hike, Australians could pay up to $159 extra a year.
This could edge above $200 for elderly Australians and families.
Last year, the average increases from the “big four” health funds — Bupa, Medibank, NIB, and HCF — worked out to 2.92 per cent.
This year’s rise is smaller than the annual rise in wages, the age pension and inflation, Health Minister Mark Butler said.
Wages rose by 4.2 per cent while inflation increased by 4.1 per cent in 2023. Social security payments have also increased in line with inflation.
“I wasn’t prepared to just tick and flick the claims of health insurers, as the opposition asked me to do,” Butler said.
“I asked insurers to go back and sharpen their pencils and put forward a more reasonable offer for the 15 million Australians with private health insurance.”
Butler said the government had given $7.3 billion to policyholders through its private health insurance rebate.
It’s estimated more than $23.5 billion in health and medical benefits were paid out by private insurers in the past year.
“Private health insurers must ensure their members are getting value for money,” Butler said.
“When costs rise, Australians want to know that higher premiums are contributing to system-wide improvements like higher wages for nurses and other health workers and ensuring that affordable services are available.”
Australian Medical Association president Professor Steve Robson said more oversight was needed to make the system fairer.
“We need an independent body that has the capacity, objectivity and expertise to ensure the system is fair for patients and balances everyone’s interests,” he said.
“We have seen people signing up in droves to insurers and at the same time we’ve seen management expenses increasing. We want to see a mandatory minimum payout with 90 per cent of every premium dollar going back to the patient.
– With AAP