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Why Do Private Health Insurance Premiums Increase in 2024?

In 2024, the price of private health insurance in Australia is set to rise by 3.03% on April 1. This adjustment, part of an annual review process, reflects the ongoing changes and challenges within the healthcare industry For many who rely on this insurance for their health care, finding ways to manage this increase is important.
Fact Checked

Updated: 28 May 2024

This guide explores the factors contributing to the premium rise, identifies which insurance providers are most affected, and suggests strategies to mitigate the impact on your finances. By understanding the landscape of health insurance costs for 2024, you can make more informed decisions and navigate these changes with greater ease.

Key facts

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Why are premiums going up?

Understanding why private health insurance premiums are set to increase in 2024 requires considering the broader picture of the healthcare industry and economic trends. Let’s examine some of the factors that affect the cost of premiums.

It is crucial for policyholders to stay informed and adapt their coverage plans accordingly. Exploring options for managing insurance expenses, such as reviewing policies and considering different coverage levels, can help mitigate the impact of premium increases.

2024 Premium Increases by Insurer

Insurer
Rate 2023 (%)
Rate 2024 (%)
Rate Change (%)
Demo Image
1.69
2.19
0.5
Demo Image
3.76
1.42
-2.34
Demo Image
3.39
3.61
0.22
Demo Image
4.46
4.51
0.05
Demo Image
3.48
1
-2.48
Demo Image
2.33
2.91
0.58
Demo Image
4.49
3.95
-0.54
Demo Image
2.96
3.31
0.35
Demo Image
2.72
4.1
1.38
Demo Image
2.5
2.65
0.15
Demo Image
2.65
2.82
0.17

Source: Privatehealth.gov.au (March 2024)

Impact On Policyholders

Insurers should clearly communicate any changes in premiums to policyholders. This ensures that everyone understands why their insurance costs are changing and their options. Clear information helps policyholders make informed decisions about their health insurance plans, such as adjusting their coverage or seeking alternatives that better match their needs and budget. Proper communication builds trust between insurers and their customers, making it easier for policyholders to manage their health insurance effectively.

Wages and Inflation

The upcoming premium increase in health insurance, though an additional expense, stands at 3.03%, which is actually below the current rise in wages at 4.2% and inflation at 4.1%. This situation indicates that health insurance is becoming slightly more affordable for policyholders relative to other living costs

Despite premiums going up, the slower rate of increase compared to wages and general inflation means that, proportionally, Australians might find they have a bit more in their budgets to accommodate these changes. Understanding this relationship between wages, inflation, and health insurance premiums can reassure policyholders concerned about their financial wellbeing in the face of rising costs.