These Aussies to cop new $134 expense tomorrow

Health insurance premiums will start increasing by 2.9 per cent from tomorrow.

·2-min read
Australian walking in the city. Australian money notes.
More than a million Aussies are facing higher health insurance premiums from tomorrow. (Source: Getty)

Aussies will have to fork out an extra $134 for health insurance from tomorrow, as funds begin hiking their premiums.

New research by iSelect found a third of Aussies had considered downgrading or cancelling their health insurance cover in the past year, in the wake of the skyrocketing cost of living.

Health insurance premiums are set to rise by 2.9 per cent on average from tomorrow, costing Aussie families an extra $134 per year and singles an extra $60.

Some funds have delayed their increase to later in the year. This includes Medibank and ahm - who have delayed their increase to June 1 - and HCF and nib - who have postponed to September 1.

HBF is the biggest health fund increasing premiums tomorrow. Its premiums will rise by 4.49 per cent on average. Separate research by Compare Club found the increase would mean a family on the Flex 60 policy would pay $215 extra per year and couples $156 more.

“This is the second year in a row that HBF has one of the highest average rises. Combined with 2022’s increase, their customers will be paying an average of 8.11 per cent on premiums,” Compare Club CEO Andrew Davis said.

Aussies urged to shop around

Aussies are being encouraged to compare their options, before the price hikes kick in.

“If your fund has postponed your increase, remember that it’s not a cancellation – your policy will likely still rise at some point this year. Don’t wait to shop around and compare your options to see if you can save some money,” iSelect spokesperson Sophie Ryan said.

Joel Gibson, author of Easy Money and Kill Bills, has also urged Aussies to shop around for savings.

“You can sometimes save hundreds of dollars on your premium when you switch because you may review your cover and find you don’t need certain things or you may find a fund that has the same level of cover for less,” Gibson said.

Health funds often offer sign-up incentives, such as up to eight weeks free or up to $800 cashback for new members.

You also don’t have to reserve waiting periods if you switch to a health fund with the same or lower level of cover.

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