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Health insurance premiums set to cost more

Yahoo!7 Finance

If you have private health insurance, get ready for a shocking increase in your premium.

According to reports, health fund premiums are set to rise by approximately $150 for families from April 1.

Single people paying $1,500 would have to pay an extra $75 a year in premiums.

In more bad news for those who joined a health fund after age 30, premiums will rise by up to a further 27 per cent or $525 a year from July 1 under changes to the government’s rebate and subsidy plans.

Related: What if your health insurance claim is rejected?

According to industry lobby group Private Healthcare Australia, high earners will have to pay up to an extra $1,200 a year for their health cover on top of the general $150 a year premium rise.

Experts believe a 7.8 per cent rise in payouts for hospital services and an 8.8 per cent rise in rebates for general services like dental and optical care has led to this hike.

According to an Australian Institute of Health and Welfare report released in September 2012, expenditure on health reached $130.3 billion in 2010/11.

On average, that’s $5,800 spent on health needs for each Australian every year, and growing at over five per cent per year, on average.

Want more affordable insurance? Find out how you can get it.