Private Health Insurance Premium Increases at Four Year Low
The annual increase in private health insurance premiums will this year be the lowest in four years.
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28 February 2012
The annual increase in private health insurance premiums will this year be the lowest in four years.
Health Minister Tanya Plibersek said the average 5.06% premium increase was achieved after 24 of 34 health insurers were asked to resubmit their applications to provide further evidence to justify the increase requested.
“This resulted in seven insurers reducing their premiums, helping bring about lower premium increases for four million Australians, representing 38% of people covered by private health insurance,” Ms Plibersek said.
Ms Plibersek said this year’s increase was lower than last year (5.56%), and lower than the rising amounts charged by doctors and hospitals in the last year.
“The increase is half a percentage point lower than last year and more than one and a half percentage points lower than the average of the last five years of the Howard Government.”
When Tony Abbott was health minister annual premium increases peaked at 7.96% in 2005 and averaged 6.44%.
Ms Plibersek said the private health insurance premium increase will take effect from 1 April 2012.
“The benefits paid to private health insurance members increased by 7.6% to more than $13 billion in 2010-11. Benefits paid are forecast to further increase by 9% for 2012-13, which is significantly more than the average premium increase.”
The average premium increases for individual insurers will be published by the Government at the Australian Government Department of Health and Ageing website to give consumers further choice and information.
Private health insurance premium applications are assessed by the Government to ensure that increases are the minimum necessary to meet legal requirements.
Premium increases for policyholders will vary across individual insurers and products, depending on their policy type. Insurers will contact members, as necessary, to notify them of a change in their premium.
Consumers are also able to compare the coverage and costs of individual insurance products at the Australian Government Private Health Insurance Ombudsman website, with the new premium information available on this website from 1 April 2012.
Ms Plibersek said an additional one million people had taken out private hospital insurance since 2007, with more than 10.4 million Australians now covered, the highest number since June 1975.
For more information contact the Minister’s Office on 02 6277 7220
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