Health insurance average increase of 5.59 per cent from 1 April 2016

The smallest increase was the Doctor's Health Fund Pty Ltd at 3.76 per cent and the highest was CUA Health Fund Ltd 8.95 per cent.

 

The average increase was about three times the rate of inflation.

 

Individual premium increases were:

Insurer

Average Increase with rate protection

ACA Health Benefits Fund Ltd

6.19%

Australian Unity Health Ltd

5.05%

BUPA Australia Pty Ltd

5.69%

CBHS Health Fund Ltd

5.92%

Cessnock District Health Benefits Fund Ltd

6.19%

CUA Health Fund Ltd

8.95%

Defence Health Ltd

5.48%

Doctor's Health Fund Pty Ltd, The

3.76%

GMHBA Ltd

5.44%

Grand United Corporate Health Ltd

4.26%

HBF Health Ltd

4.94%

Health Care Insurance Ltd

6.90%

Health Insurance Fund of Australia Ltd

6.55%

Health Partners Ltd

7.14%

Health.com.au Pty Ltd

8.81%

Hospitals Contribution Fund of Australia Ltd, The

5.42%

Latrobe Health Services Ltd

5.52%

Lysaght Peoplecare Ltd

4.38%

Medibank Private Ltd

5.64%

Mildura District Hospital Fund Ltd

6.74%

National Health Benefits Australia Pty Ltd

5.28%

Navy Health Ltd

5.50%

NIB Health Funds Ltd

5.55%

Phoenix Health Fund Ltd

5.72%

Police Health Ltd

4.81%

Queensland Country Health Fund Ltd

4.91%

Queensland Teachers' Union Health Fund Ltd

7.15%

Railway & Transport Health Fund Ltd

5.61%

Reserve Bank Health Society Ltd

5.37%

St Luke's Medical & Hospital Benefits Association Ltd

5.89%

Teachers Federation Health Ltd

4.97%

Transport Health Pty Ltd

6.49%

Westfund Ltd

5.94%

INDUSTRY WEIGHTED AVERAGE

5.59%

 

Health insurance premium increases will hit a four year-low in 2016 after a record number of insurers resubmitted lower price rises in response to a direct request from Minister for Health Sussan Ley.

 

Private health insurance premiums will now increase by a weighted industry average of 5.59 per cent from 1 April 2016. This is compared to an average annual price rise of 6.1 per cent since 2002.

 

Ms Ley welcomed today’s show of “good faith” from private health insurers in the Government’s current reform process, but cautioned this was just a first step and broader structural overhauls were needed to deliver significant, lasting savings for consumers on their premiums.

 

“It must be acknowledged that the majority of insurers have used this opportunity to show consumers and the Government they are serious about engaging in this sensible reform process to try and lower premiums long-term.

 

“However, it also demonstrates the current premium approvals process isn’t providing the right checks and balances to ensure consumers get the best deal every year and there are clearly significant additional costs and barriers blocking larger premium savings from being passed on.

 

“For example, it’s easy to see the negative impact on premiums when a pacemaker for a private patient currently costs their insurer $43,000, despite the same device only costing $17,000 if they were treated as a public patient.

 

“Other areas we’re looking at included greater transparency around health policies, including addressing junk products, confusing terminology and hidden payments, for consumers as part of a balanced package of reforms.”

 

Total benefits paid to private health insurance members grew by $1 billion – or 5.7 per cent – from about $17.2 billion to $18.3 billion in the 12 months to December 2015.

 

More-than 40,000 Australians recently overwhelmed a Government survey on private health insurance, with the majority raising concerns about the affordability of their premiums and the value for money they received from their policies.

 

2 March 2016.