Private healthcare premiums set to rise on April 1

PRIVATE health insurers are set to bump up premiums next month, the second time in six months members have been slugged with higher fees.

On April 1, Australia’s healthcare sector is set to implement premium rises that will make the cost of holding private hospital cover more expensive. The industry traditionally raises prices annually, but due to the coronavirus pandemic, last year’s April rise was delayed to October.

Insurers claim the latest rise is due to inflation and the increased costs of providing healthcare.

The rise is despite the Reserve Bank of Australia flagging inflation is expected to remain below its target level of 2 to 3 per cent and wages growth is anticipated to remain flat for the next few years.

Canstar financial executive Steve Mickenbecker said the average increase over the six months to April from both rises sits at 5.66 per cent and would be a sting to a number of policyholders, but not enough to deter them from renewing.

“In April, the spread of increases that will come into effect from the insurers range from a low of 0.50 per cent to 5.47 per cent at the top and underlines just how important it is for people to compare policies and find as low a premium as they can for the level of health cover they need,” he said.

According to Canstar, hospital cover for singles will on average rise by $53 while family plans will jump by about $107.

Bupa managing director Emily Amos argued the inflation levels within the health sector were rising at rates much faster than the general economy.