Private health insurance premiums will rise at their fastest rate in almost a decade after the Albanese Government approved a 4.41 per cent average increase from April. Source: ABC News.
The above-inflation rise is the largest since 2017, with Health Minister Mark Butler saying he had ordered insurers to go back to the drawing board on “multiple” occasions before landing on an agreed increase.
Mr Butler said it reflected the rising costs of medical and hospital services, which rose by 5 per cent last financial year.
“The Government understands the pressure health insurance premium changes put on Australians and decisions about private health insurance premiums must put consumers first,” he said in a statement.Â
“This premium round has been guided by my commitment to maintain the value of private health insurance for Australians, while making sure the sector plays its part in supporting private hospitals facing rising costs and significant challenges.”
Each year, the health minister must approve annual premium rises, which affect more than 15 million Australians who have some form of private health insurance.
The rise is above household inflation, with the additional hip-pocket pressure coming as many Australians deal with cost-of-living pressures.
Health insurance premiums rose by an average of 3.73 per cent last year, as the federal Government tried to fend off a political headache on the eve of an election that was largely fought on cost-of-living and health issues.
Private Healthcare Australia chief executive Rachel David said health funds were working to balance the affordability of health insurance with the rising cost of providing care to an aging population that had more complex needs.
Shadow Health Minister Anne Ruston said the Albanese government had “delivered the largest health insurance premium rise in eight years”.
“At a time when household budgets are already under enormous pressure, this premium increase is another hit families cannot afford,” Senator Ruston said.
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Private health premiums to rise at fastest rate in almost a decade (By Stephanie Dalzell, ABC News)Â
