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Aussie Health Premiums Skyrocket: What You Need to Know
18 Feb
Summary
- Health insurance premiums will increase by 4.41% from April 1.
- Consumers can save by pre-paying next year's premiums.
- Switching insurers could save policyholders $1,387 annually.
Australians are facing a substantial increase in private health insurance premiums, with a 4.41% rise set to take effect from April 1. This marks the most significant single-year premium hike since 2017 and reflects rising costs within the health sector.
To mitigate these increased costs, consumers have several options. Pre-paying the next 12 months of premiums at current prices before the increase is a viable strategy. Additionally, reassessing existing policies to ensure coverage levels align with current needs can prevent overspending.
Switching to a different health insurer can also lead to considerable savings. For instance, moving from an average-priced gold hospital policy to a lower-cost option could save individuals up to $1,387 annually, provided the coverage remains comparable.
Furthermore, the federal government is introducing legislation to combat 'product phoenixing,' a practice where insurers replace existing policies with similar ones at higher prices or with reduced benefits. This move aims to protect families from unknowingly paying more for less coverage.
The approved premium rise is an industry average, with some insurers implementing increases as high as 5.98%, while others may only see a 1.98% jump. Health funds cite the escalating costs of care for an aging population with complex needs as the primary driver for these adjustments.
