Health cost rise to vary

AUSTRALIA’S listed private health insurers, Medibank Private and nib, will lift their premiums slightly more than the increase for the wider industry.

The revelation comes as the sector braces for a cap on annual price rises, should federal Labor win government.

Health Minister Greg Hunt yesterday announced the average increase in private heath insurance premiums next year would be 3.25 per cent – the lowest in 18 years. They will come into effect from April 1.

Medibank’s average increase will be slightly higher, at 3.3 per cent – also its lowest rise in 18 years. At rival listed insurer nib, the average increase will be 3.38 per cent, which is the lowest at that insurer in 16 years.

Bupa, the second-biggest health insurer in Australia, announced an average premium increase of 2.99 per cent, while HBF will deliver an increase of 1.94 per cent.

HBF chief John Van Der Wielen said this was the result of an organisation-wide initiative to control costs.

“Our low increase reflects the progress we’ve made this year, but work continues to make us the most competitive health fund, long term,” he said.

Bupa Health Insurance managing director Dwayne Crombie said the fund recognised cost-of-living challenges facing Australian families: “It’s not good enough to expect customers alone to keep absorbing these costs. This lower increase means we will share some of that cost with our members.”