You are here:

The Cost of Private Health Insurance in 2024

In 2024, private health insurance in Australia is more important than ever. With health care costs increasing and new rules coming into play, picking the right insurance plan is a big deal for many people. This year, finding the right insurance means looking closely at what’s changing and how it affects what you pay.

Megan Fraser

Fact Checked

Updated: 19 May 2024

The cost of private health insurance is shaped by many things. New government rules, changes in who needs insurance, better technology for doctors and hospitals, and health issues that affect the whole world can all make insurance cost more or less. It’s important to look at all these factors to understand why insurance costs what it does in 2024.

Key facts

Compare Health Insurance Quotes

Protect what’s most important to you. It’s easy, convenient and free!

By clicking ‘Compare & Save Now’, you are accepting our Terms of Use, Privacy Policy and consenting to us contacting you about the products and services provided. Please consider the PDS before purchasing any products.

Why do my premiums increase?

Many people with private health insurance notice that their premiums – the amount they pay for insurance – go up every year. It’s common to wonder why this happens, especially when you might not use your insurance often.

This section is here to clarify why private health insurance premiums keep rising. There are several reasons behind these increases, and understanding them can help make sense of the changes you see on your bill. We’ll take a closer look at what drives these cost changes and explain it in a way that’s easy to understand.

Government Policies and Regulations

In 2024, government policies and regulation changes are big reasons why the cost of private health insurance is changing. These policies and rules can make insurance companies change how much they charge you. Sometimes, the government introduces new rules to ensure insurance is fair and covers what it should. Other times, there might be changes in how much the government helps pay for insurance, which can also affect prices.

It’s important to know that when the government makes these changes, it often tries to improve healthcare for everyone or improve insurance. However, these changes can lead to higher costs for insurance companies, and often, they pass these costs on to us as higher premiums.

Technological Advancements and Healthcare Costs

New medical technologies are changing how much healthcare costs, affecting insurance premiums. On one side, advanced treatments and technologies can make healthcare more expensive. Things like new surgeries, better machines for diagnosing diseases, and cutting-edge treatments all cost a lot of money. This means insurance companies might have to pay more when we get sick or need these advanced treatments, leading to higher premiums for us.

On the other side, technology can also help save money. For example, new apps that help us stay healthy, machines that make hospitals work faster and cheaper, and treatments that prevent diseases can all reduce healthcare costs in the long run. These savings can sometimes help keep insurance premiums from going up too much.

Overall, technology affects healthcare costs in both directions – it can make it more expensive because of advanced treatments but can also lead to savings through better efficiency and preventing illnesses.

Inflation and Cost of Living

The cost of private health insurance doesn’t just change because of healthcare itself. It’s also affected by bigger economic issues like inflation and the rising cost of living. Inflation means that money buys less than it used to, which happens across the whole economy, including healthcare. 

These costs can increase when hospitals and doctors spend more on their supplies or to pay their staff because of inflation. Then, insurance companies might increase premiums to cover these higher costs. So, when you see your insurance premium rising, part of the reason might be that everything else is getting more expensive.

Demographic Factors and Insurance Premiums

Australia’s population is changing, which also affects health insurance costs. As the population ages, more people need healthcare, which can be more complex and expensive. Older adults often need more medical care, which can drive up costs for insurance companies. These companies might then increase premiums to keep up with these higher costs. Besides aging, other health trends, like increases in certain diseases or changes in how many people need healthcare, can also affect insurance costs. As the health requirements of the population change, insurance companies adjust their prices to reflect these new realities.

How Much Does Private Health Insurance Cost?

Insurer
Hospital Cover Cost (per month)
Policy type
Demo Image
$121.80 – $154.15
$26.70
Demo Image
$121.95 – $142.00
$35.85
Demo Image
$119.10 – $145.70
$16.95
Demo Image
$125.92 – $136.80
$18.60
Demo Image
$119.70 – $128.70
$22.85
Demo Image
$137.60 – $147.35
$38.55
Demo Image
$118.30
$28.65
Demo Image
$130.40 – $160.10
$24.90
Demo Image
$163.11
$24.18

Source: Privatehealth.gov.au (April 2023; Premium estimates for an individual living in NSW, Hospital cover estimates for a Bronze plan and Extras cover estimates for Basic Extras cover)

Choosing the Right Policy

When picking a health insurance policy, it’s crucial to weigh your personal or family health requirements against what you can afford. Look for a policy that offers the benefits you will most likely use without stretching your budget too thin.

Consider the kind of treatments and services you need coverage for, whether you’re planning for a family or if you need specific ongoing care. Matching your health insurance to your life stage and health priorities ensures you’re not overpaying for unnecessary coverage.

How to Minimize Your Health Insurance Costs

Common Mistakes to Avoid

When choosing health insurance, it’s easy to get caught up in low premiums without considering what they mean for your coverage. Overlooking the limitations of a policy can leave you underinsured when you need care the most. Being swayed by the cost alone might mean facing high out-of-pocket expenses later.

To avoid these mistakes, take time to compare policies thoroughly. Understand the insurance terms and what they mean for your coverage. Think about your long-term healthcare needs, not just what you need now. This approach helps ensure you choose a policy that offers both value and adequate protection.

Frequently Asked Questions and Answers

Government initiatives like the Private Health Insurance Rebate, Lifetime Health Cover (LHC), and the Medicare Levy Surcharge (MLS) significantly affect insurance costs. The rebate can lower your premium, the LHC encourages early insurance purchases, and the MLS impacts high-income earners without private cover, all influencing how much you pay.

The main factors include advancements in medical technology that often come with high costs, increasing demand for healthcare services as the population ages, and administrative expenses. These contribute to higher premiums to cover the growing cost of providing health services.

Compare policies by examining coverage levels and how they match your health needs. Consider if paying a higher excess could lower premiums. Also, review potential savings from policies covering only the services you will likely use.

Yes, you can reduce your premium by applying for government rebates, choosing policies with a higher excess for lower premiums, or joining wellness programs that offer discounts. These strategies can help lower costs without significantly impacting your coverage.

Reviewing your policy annually or after significant life events like marriage, having a child, or changing jobs is wise. Regular reviews help ensure your policy still meets your needs and remains cost-effective as market conditions and personal circumstances change.

Share:

Specialist

Megan has extensive experience writing about health and life insurance in Australia. Megan has a special interest in health and wellness. She relies on her background in counselling psychology to convey the latest findings in a manner that is most beneficial to ComparingExperts readers. In every article she writes, Megan aims to uphold the standards of the Private Health Insurance Intermediaries Association (PHIAA) which ComparingExpert is part of.

Other Topics

Find out more with our useful guides

Have a question? Ask a specialist.

Submit