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Millions of Aussies to be hit with $125 expense next week

A composite image of Australian money and a crowd of people walking in the Sydney CBD top represent money spent on health insurance.
Health insurance prices will rise next week. (Source: Getty)

Aussies with private health insurance will be hit with higher prices next week as temporary financial relief comes to an end.

On November 1, Bupa, nib, and HCF customers will all see their premiums rise by around 2.66 per cent, to 3.18 per cent, on average.

Spokesperson for iSelect Sophie Ryan said while some funds increased their policy premiums on April 1, many health insurers delayed their 2022 premium increases due to the ongoing impact of COVID-19.

“This year’s average premium increase is 2.70 per cent, costing families and couples an extra $125 per year, on average, and $58 more a year, on average, for singles,” Ryan said.

Ryan said it was important Aussies reviewed their private health cover now to ensure they were still getting a good deal on their policy.

She said this was especially important at a time when one in four Aussies already said they were struggling to keep up with the rising cost of living.

i-Link research, commissioned by iSelect, found that groceries, petrol and utilities were the top three household costs that had increased noticeably over the past six months for Aussies surveyed.

Most said they were planning to cut back on dining out, groceries and transport costs in the next three months.

“Given the rising cost of living and the fact that many health funds are raising premiums, more than half of Australians (67 per cent) surveyed said they will also review their private health insurance over the coming months or will consider it,” Ryan said.

“Reviewing your private health insurance policy at least once a year is a great idea, especially when we know that there are savings or better value that could be found for those who do shop around.”

The research found that, of the 25 per cent of Aussies surveyed who said they switched their health insurance policy in the past two years, 82 per cent said they saved money.

Almost half said they had saved more than $200 a year by making the switch.

“If it’s been a few years since you last reviewed your policy, or perhaps you never have, then you could be paying unnecessarily for things you no longer need or not be covered for things you do need,” Ryan said.

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