The Federal Government has approved a 4.41% increase for private health insurance premiums, the biggest hike in nearly ten years.
A premium is the amount of money a consumer spends monthly or annually to maintain their insurance policy.
Health Minister Mark Butler said rising costs of healthcare and hospital services contributed to the higher cost.
The new premiums will come into effect on 1 April.
Background
Private health insurance covers medical expenses that aren’t included in the taxpayer-funded national health insurance scheme, Medicare.
This includes dentistry, physiotherapy, and private hospital access.
Prices vary based on how much a consumer’s policy covers.
Your contribution ensures The Daily Aus can continue doing the work you love.
I want to give $10 monthly to help TDA keep doing the news.
Your details:
Private health insurance that only covers hospital access costs an individual $1,020–$3,240 annually, according to Money.com.au.
Announcement
On Tuesday, Health Minister Mark Butler announced health insurance premiums would increase by 4.41% by 1 April. Last year, the increase was 3.73%.
Private health insurance companies ask the Health Minister if they can increase their premiums each year. The minister can deny the request if it isn’t in the public interest.
In Butler’s statement, he said he had asked insurance companies to “resubmit their premium requests multiple times”.
He told ABC Radio on Wednesday: “I’m under no illusions about the pressure this is going to place on households at a tough time”.
The Opposition said the Government had “quietly imposed another cost increase on the 15 million Australians who rely on private health insurance... during a cost of living crisis.”
Shadow Health Minister Anne Ruston said the “increase is another hit families cannot afford”.
