Health cover dearer in Vic

Our state has highest insurance costs

VICTORIANS are paying more for private health insurance than the residents of any other state, alarming new data shows.

Ahead of price hikes of 3.95 per cent tomorrow, research from comparison site finder.com.au reveals Victorian families are already shelling out an average of $4786 a year for health insurance.

That is $300 more than families in New South Wales and $1400 above the average premiums paid in the Northern Territory.

The figures, obtained by News Corp, show the average annual policy for single Victorians costs $2206, compared with $2071 in NSW and $1922 in Western Australia.

Despite the steep charges copped by Victorians, a finder.com.au survey of more than 1200 people found only one in four had switched health in- surance providers in the past five years to try and get a better deal.

This year’s average premium increase is the lowest since 2001 but will still cost families an extra $140 over 12 months.

Private health insurance holders can lock in better deals if they pay their annual premiums upfront to avoid the April 1 price hike.

But the survey also found that 81 per cent of Victorians were not planning to pay in advance.

Finder.com.au insurance expert Bessie Hassan said there were several reasons why Victorians were paying more for private health insurance.

She said costs were affected by different taxes and regulations in different states.

“Other influencing factors include hospital costs, and even discrepancies between gap payments from specialists,” she said.

“States with older popu- lations also typically see more expensive cover overall.”

Labor has made private health insurance a key issue for the next federal election, with Opposition Leader Bill Shorten promising to cap price increases at 2 per cent, saving families an average of $340 over two years.

Health Minister Greg Hunt said this year’s increase was the lowest in almost two decades. The Government introduced laws this week to try to make health insurance cheaper and simpler.

“We must continue to drive better value policies for every Australian. Private health insurance is an essential and valuable part of the Australia’s health system,” Mr Hunt said.

Australian Medical Association president Dr Michael Gannon warned people to choose their insurance carefully, saying some “junk policies” would not provide cover that consumers expected when they needed it.