Health insurance premiums to rise by 3.03% in 2024
Health insurance premiums are going up by an average of 3.03% this year. That's pretty good news for Aussies - 3.03% is on the low end of how much health cover goes up each year.
The Federal Health Minister needs to formally sign off on health insurance price increases each year. This is different to other types of insurance which are a bit more unregulated.
3.03% isn't the lowest price rise we've ever seen, but it's close. Peep the graph below for a better idea of what the price rises are normally like.
How much will the premium rise cost you?
Let's have a look at how much this will actually cost you, dollar-wise. In the grand scheme of things, it's not a huge amount of money, but times are tough and every dollar counts! The table below breaks this down in a bit more detail.
| Policy | Average premium | With 3.03% | Annual cost | Difference |
|---|---|---|---|---|
| Basic | $84.13 | $86.68 | $1,040.16 | $30 |
| Bronze | $98.84 | $101.83 | $1,221.96 | $35 |
| Silver | $147.89 | $152.37 | $1,828.44 | $53 |
| Gold | $219.35 | $226 | $2,712 | $78 |
Average premium increases – how does your fund compare?
You can find out how much your health fund is increase premiums in the table below.
- This highest increase is from CBHS Corporate, at 5.82%
- The lowest increase is from Health Care Insurance (HCi), at just 0.27%
| Health Fund | 2024 increase |
|---|---|
| ACA | 3.18% |
| AIA | 2.19% |
| Australian Unity | 1.42% |
| Bupa | 3.61% |
| CBHS Corporate | 5.82% |
| CBHS Health Fund | 4.51% |
| CUA | No data |
| Defence Health | 1.00% |
| Doctors' Health | 2.79% |
| GMHBA | 2.91% |
| HBF Health | 3.95% |
| Health Care Insurance | 0.27% |
| HIF | 3.87% |
| Health Partners | 1.93% |
| Hospitals Contribution Fund | 2.89% |
| Hunter Health Insurance | 3.32% |
| Latrobe Health | 3.04% |
| Medibank (including ahm) | 3.31% |
| Mildura District Hospital Fund | 2.14% |
| National Health Benefits Australia | 3.41% |
| Navy Health | 3.10% |
| NIB | 4.10% |
| Peoplecare | 1.63% |
| Phoenix | 3.72% |
| Police Health | 3.01% |
| Queensland Country Health | 2.53% |
| Queensland Teachers' Union Health | 1.96% |
| Reserve Bank Health Society | 2.97% |
| St Luke's | 3.20% |
| Teachers Federation | 2.65% |
| Transport Health | No data |
| Westfund | 2.82% |
It could have been twice as much
Labor rejected the health fund's first proposed increase back in December 2023. The funds proposed a 6% increase, which would have been the biggest increase in 6 years.
At the time, Health Minister Mark Butler said he wanted a "more reasonable figure...particularly while household budgets are under pressure".
Of course Mr Butler is focussing on the cost of living crisis because it's a good look politically. But that said, knocking off 50% from the price rise ain't half bad.
When will health insurance prices rise?
April 1 is when health funds normally increase prices. The last couple of years this was often delayed, as a result of higher profits during the pandemic. This is less likely in 2024, as the funds are returning to some level of normalcy. So I suspect April 1 is a pretty good bet.
The health funds did kick up a fuss last week about not having enough time to communicate the increases to policy holders, but I don't suspect it will stop them from an April 1 go live.
Hi, Tim! Have you found locking last year’s health premiums before the hike is a saving? It sounded like a good idea, but when I enquired with my health insurance, it didn’t seem like there’s much savings in comparison because the insurer said to do that, they have to do a manual payment (i.e. you can pre-pay up to 18 months) which takes off the 3.85% discount for direct debit payments (which I am already doing, on top of the 4% discount for paying it annually). They said they couldn’t bring forth my following direct debit for more than 30 days… (I had paid for 12 months and would like to lock in the extra 6 months on last year’s rate). So, the suggestion to lock in last year’s premium rate didn’t seem like a savings unless I’m missing a point or I’ve gotten the calculations wrong. What is your opinion on this?
Hey Sophie – you’ve hit on something that I wish we talked about more! The key thing to remember is the fact that health insurance premiums are not actually going up by very much right now, compared to the historical numbers. Of course no one wants to pay more, but 3% is very low compared to earlier years, which were generally north of 5%.
Firstly that means you’re right, the direct debit savings tend to be about the same amount as the price increase. So the saving for paying up front is less – maybe between 1 and 3 percent, depending on your health fund.
Secondly, we have to thing about inflation and savings account interest rates. Inflation right now is still around 5%, and the ING savings maximiser is paying 5.5% interest (just one particularly good example). If you pay a year of premiums upfront, then that’s money you could have left in a savings account getting 5.5% interest. That rate could change across the year of course.
Basically, to make it worth paying a year in advance, you need the saving to be more than what you could earn on that money in a savings account – probably the one you have already with your bank to keep things fair. At the moment, the numbers say probably hold your cash this year – but that could change in future years.
Realistically, the ‘pay a year upfront’ is old advice that doesn’t always make sense, but it’s sometimes a bit complicated to explain why it doesn’t make sense. I probably should write an article about it honestly!
(as a side note, sorry I didn’t get this response to you until after April 1 – it’s a busy time for us here!)
Thanks for messaging – have a great April!