Health insurance rate rise 2018 – what you need to know

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Health insurance rate rise 2018 – what you need to know

As of April 1, private health insurance premiums will rise by an average of 3.95 per cent. But despite being the lowest annual premium change since 2001, it doesn’t fall in line with last year’s two per cent wage growth and inflation.1 This guide outlines what you can expect to see from your private health fund, as well as how to save when it comes to rising private health insurance.

Why the hike?

There are two main factors spurring higher private health insurance premiums: an aging population, and rising chronic disease. By 2052, 21 per cent of the population will be aged 65 and over (8.3 million people), and 4.2 per cent (1.6 million people) will be aged 85 and over.2 Throw in the cost of new medical technologies to treat increasingly common chronic diseases3 such as cancer, coronary heart disease, and diabetes in Australia, and you have a need for rate rises.

Premiums are expected to rise by about $73 this year for singles, and $143 for families per year.1

Find your health fund in the below table for an understanding of how the changes this April will affect you.

Average health insurance premium increase by insurer 2018
Health fund Average increase with rate protection (%)4
ACA Health Benefits Fund Limited 2.72%
Australian Unity Health Limited 3.89%
BUPA HI Pty Ltd 3.99%
CBHS Corporate Health Pty Ltd 2.38%
CBHS Health Fund Limited 2.73%
Cessnock District Health Benefits Fund Limited 6.40%
CUA Health Limited 3.29%
Defence Health Limited 5.97%
Doctor’s Health Fund Pty Ltd, The 2.28%
Emergency Services Health Pty Ltd 3.63%
GMHBA Limited 4.34%
Grand united Corporate Health Limited 2.84%
HBF Health Limited 3.75%
Health Care Insurance Ltd 8.90%
Health Insurance Fund of Australia Limited 5.35%
Health Partners Limited 3.95%
health.com.au Pty Ltd 5.87%
Hospitals Contribution Fund of Australia Ltd, The 3.39%
Latrobe Health Services Limited 4.25%
Medibank Private Limited 3.88%
Mildura District Hospital Fund Ltd 5.68%
MO Health Pty Ltd 3.90%
National Health Benefits Australia Pty Ltd 3.97%
Navy Health Ltd 3.94%
NIB Health Funds Ltd 3.93%
Nurses & Midwives Health Pty Ltd 3.22%
Peoplecare Health Limited 4.19%
Phoenix Health Fund Limited 4.19%
Police Health Limited 3.72%
Queensland Country Health Fund Ltd 4.39%
Queensland Teachers’ Union Health Fund Ltd 4.40%
Railway & Transport Health Fund Ltd 4.47%
Reserve Bank Health Society Ltd 3.97%
St Luke’s Medical & Hospital Benefits Association 4.23%
Teachers Federation Health Ltd 2.84%
Transport Health Pty Ltd 5.16%
Westfund Limited 3.43%

If you’re a member of a private health insurance fund, make sure you check your letterbox. You’ll be receiving a letter from your provider outlining your exact premium increase, which may be above or below the average increases featured above.3

How to save on premiums

  • Review your current health insurance policy to see if it still suits your needs and budget. Then compare providers to see if you can find a better deal elsewhere.
  • Be sure to always look out for exclusions when comparing health funds, and shop around for bonuses and discounts.
  • Get smart with your policy to save. Consider increasing the excess on your policy to lower the premium, and don’t hesitate to ask your health fund if they offer discounts for setting up a direct debit.5
  • Make sure you take out hospital cover before July 1 following your 31st birthday to ensure you won’t be affected by a Lifetime Health Cover age loading.
  • Don’t hesitate to scrap your policy’s extras if they reduce your premium – don’t pay for services you don’t need.
  • Check with your provider to see if you can pay one years’ worth of premiums up front before April 1 to avoid the rise this year.

With private health insurance premiums on the rise, it’s never been a better time to assess your cover. As of April 1, singles will be paying approximately $73 more for their private health insurance, and families will be forking out an additional $143 per year1, so don’t hesitate to use any savings tips you’ve found to make your cover affordable.

Choosi makes finding the right health insurance policy easy. Compare the benefits and quotes of a range of health insurance policies that suit your needs today.

References

  1. Health insurance premiums to rise by twice as much as wagesabc.net.au
    http://www.abc.net.au/news/2018-01-25/health-insurance-premiums-to-rise-4pc/9360936
  2. Ageing and the health system: challenges, opportunities and adaptations 2014Australian Institute of Health and Welfare
    https://www.aihw.gov.au/getmedia/19dbc591-b1ef-4485-80ce-029ff66d6930/6_9-health-ageing.pdf.aspx
  3. Australia’s Health 2016Australian Institute of Health and Welfare
    https://www.aihw.gov.au/getmedia/9844cefb-7745-4dd8-9ee2-f4d1c3d6a727/19787-AH16.pdf.aspx?inline=true
  4. Average premium increases by insurer by yearDepartment of Health health.gov.au
    http://www.health.gov.au/internet/main/publishing.nsf/Content/privatehealth-average-premium-round
  5. Private health premium increases announcedChoice
    https://www.choice.com.au/money/insurance/health/articles/health-premium-hikes-on-the-horizon-131115

Posted: 23 Feb 2018

This is general information only and does not take into account your personal objectives, financial situation or needs. You should consider the relevant PDS available on this website prior to purchasing any product. Choosi offers insurance products from a range of brands but does not compare all products available in the market.

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