Invest
Rise in health premiums at 20-year low, but there’s a catch
While the Australian government’s health insurance reforms have resulted in the lowest annual average premium change since 2001, according to experts consumers could still see a “whacking” premium increase soon.
Rise in health premiums at 20-year low, but there’s a catch
While the Australian government’s health insurance reforms have resulted in the lowest annual average premium change since 2001, according to experts consumers could still see a “whacking” premium increase soon.
The cost of health insurance will continue to beat inflation, with the average industry change from 1 April 2021 costing consumers 2.74 per cent more than last year.
This means the average single person will pay an extra $1.14 per week, while a family will pay $2.44 more a week, from 1 April 2021.
But Compare Club CEO Andrew Davis noted a six-month delay in health insurance premium rises due to COVID-19 restrictions.
“This means that within a period of six months, Australians who receive the average increase will have been hit with a combined increase of 5.66 per cent – eight times the rate of inflation,” Mr Davis said.
However, the CEO believes that some of the costs associated with rising premiums are justified.
“These include the increased cost and utilisation of services, and longer waiting times in the public system that drive more people towards private hospitals,” he said.
“For example, the cost of dealing with mental health is an area where we’ve seen a lot of change in terms of uptake and service delivery.”
Mr Davis has advised consumers who receive an increase greater than 5.66 per cent to shop around and find a better rate.
“Funds will let members know in the new year about exactly how much their policies are increasing, but for many it will exceed the national average,” he said.
“Tens of thousands of Australians will and should take the nudge of a whacking premium increase as a reminder that it is worth spending a small amount of time reviewing their cover with an expert.”
“On average, households who switch health insurance providers save $385 a year, which will offset the costs of premium increases. It’s a difficult time, but also one of opportunity for those who look to reduce their premiums and align their benefits to their current and future needs, not those of the past,” Mr Davis concluded.
RELATED ARTICLES
About the author
About the author
Spending
Moneysmart study reveals Gen Z women more concerned about finances than men
A new research conducted by ASIC’s Moneysmart has unveiled the heightened levels of stress and concern regarding finances and the cost of living among Australian Gen Z women compared to their male ...Read more
Spending
The cost of politeness: Aussies out of pocket by $1,350 due to 'awkward tax'
It's the time of year when Australians dive into their pockets for festive events and gatherings, yet a recent study by PayPal suggests that many are too polite, or perhaps too embarrassed, to ask for ...Read more
Spending
Aussies can ‘NAB Now Pay Later’ with the last major bank to embrace BNPL
NAB has become the latest bank to enter the BNPL market. Read more
Spending
Aussie households spent $368 a week on transport after petrol price surge
Fuel costs have increased by 40 per cent over the past year, a new report from the Australian Automobile Association has revealed. Read more
Spending
Voters say reducing the cost of living should be the government’s top priority
Aussies have ranked high cost of living as the top issue that needs to be addressed by the next government. Read more
Spending
Bodies back Labor’s commitment to stronger BNPL regulation
All parties should commit to stronger regulations for the BNPL sector, according to Financial Counselling Australia. Read more
Spending
Household spending surges led by retail and recreation
Spending on retail, recreation and hospitality have continued to climb as COVID-19 case numbers and restrictions have eased. Read more
Spending
Banks extend financial assistance to flood-affected customers
A range of assistance is available from major banks to those impacted by flooding in NSW and Queensland. Read more
Spending
Moneysmart study reveals Gen Z women more concerned about finances than men
A new research conducted by ASIC’s Moneysmart has unveiled the heightened levels of stress and concern regarding finances and the cost of living among Australian Gen Z women compared to their male ...Read more
Spending
The cost of politeness: Aussies out of pocket by $1,350 due to 'awkward tax'
It's the time of year when Australians dive into their pockets for festive events and gatherings, yet a recent study by PayPal suggests that many are too polite, or perhaps too embarrassed, to ask for ...Read more
Spending
Aussies can ‘NAB Now Pay Later’ with the last major bank to embrace BNPL
NAB has become the latest bank to enter the BNPL market. Read more
Spending
Aussie households spent $368 a week on transport after petrol price surge
Fuel costs have increased by 40 per cent over the past year, a new report from the Australian Automobile Association has revealed. Read more
Spending
Voters say reducing the cost of living should be the government’s top priority
Aussies have ranked high cost of living as the top issue that needs to be addressed by the next government. Read more
Spending
Bodies back Labor’s commitment to stronger BNPL regulation
All parties should commit to stronger regulations for the BNPL sector, according to Financial Counselling Australia. Read more
Spending
Household spending surges led by retail and recreation
Spending on retail, recreation and hospitality have continued to climb as COVID-19 case numbers and restrictions have eased. Read more
Spending
Banks extend financial assistance to flood-affected customers
A range of assistance is available from major banks to those impacted by flooding in NSW and Queensland. Read more
