Some health insurance prices surge by 3x government-approved average rise

Switching insurers could potentially save individuals up to $1,296 and families as much as $2,493

Image source: Doidam 10/Shutterstock.com

Switching insurers could potentially save individuals up to $1,296 and families as much as $2,493

Some private hospital policies have increased by more than three times the government-approved average increase, according to new Canstar research, putting additional financial strain on many Australians.

Despite the government announcing an average annual premium rise of 3.73% from 1 April this year, our analysis of pre- and post-April prices reveals the average cost of a Gold policy for individuals has, on average, jumped up by 13.8% – an increase of $442.
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Change in average annual hospital insurance premiums – individuals
Hospital tier	Mar-25	Jun-25	Change
Basic	$1,077	$1,070	-$7 (-0.6%)
Bronze	$1,316	$1,336	+$20 (+1.5%)
Silver	$1,755	$1,838	+$83 (+4.7%)
Gold	$3,211	$3,653	+$442 (+13.8%)

Source: Canstar. See notes further below.

Families with Gold tier cover have faced average annual premium rises of 13.5%, or as much as $858.
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Change in average annual hospital insurance premiums – family
Hospital tier	Mar-25	Jun-25	Change
Basic	$2,146	$2,129	-$17 (-0.8%)
Bronze	$2,653	$2,699	+$46 (+1.7%)
Silver	$3,528	$3,712	+$184 (+5.2%)
Gold	$6,349	$7,207	+$858 (+13.5%)

Source: Canstar. Based on hospital insurance policies on Canstar’s database, excluding ‘plus’ tiers. Gov rebate of 16.405% in Mar-25 and 16.192% in Jun-25 applied. Averages based on state averages, weighted by % of hospital insured persons (APRA Mar 25).

These steeper increases reflect the flexibility insurers have in adjusting their prices, with some policies rising well above or, in some instances, below the average premium increase.

How to beat the price rises

Our research shows switching from the average annual premium to a lower-cost provider could lead to significant savings for the exact same level of cover.

For example, if an individual with Gold tier hospital cover paying the average annual premium of $3,653 switched to one of the lowest priced policies at an average of $2,357, they could potentially save $1,296 in a year.

Note: The lower figure is an average based on the lowest-priced policy available in each state and territory. See the full state breakdowns below
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Potential savings from switching hospital cover – individuals
Hospital tier	Average	Average of lowest	Change
Basic	$1,070	$979	-$91 (-8.5%)
Bronze	$1,336	$1,190	-$146 (-10.9%)
Silver	$1,838	$1,590	-$248 (-13.5%)
Gold	$3,653	$2,357	-$1,296 (-35.5%)

Source: Canstar. See notes further below.

Similarly, a family with Gold tier cover paying the average annual premium of $7,207 could switch to a lower-cost option at $4,714, potentially saving nearly $2,500.
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Potential savings from switching hospital cover – family
Hospital tier	Average	Average of lowest	Change
Basic	$2,129	$1,958	-$171 (-8.0%)
Bronze	$2,699	$2,380	-$319 (-11.8%)
Silver	$3,712	$3,192	-$520 (-14.0%)
Gold	$7,207	$4,714	-$2,493 (-34.6%)

Source: Canstar. Premiums as of 5/06/25 based on hospital insurance policies on Canstar’s database, excluding ‘plus’ tiers. Rebate of 16.192% applied. Based on state averages weighted by % of hospital insured persons (APRA, Mar 25).

Top level cover hit the hardest

Canstar’s data insights director, Sally Tindall says, “The government-approved 3.73 per cent premium price rise was always just an average, not a cap. What we can now see is that some policies have risen by up to 13.8 per cent – particularly for those with the top level of cover.”

“The reality is, Australians who have the top level of cover have been hit with the highest price hikes. Some individual policies have risen by more than $400, while some family policies have increased by almost $900 a year.

“Our research shows that over 50 per cent of people with health insurance were considering switching insurers following the April price hikes, however, the best laid plans can often get shuffled down the ‘to do’ list.

“If you haven’t done a health check on your policy since the April price rise, now is the time to do one. Find out exactly how your premium sits against the lower-cost insurers and if there’s a cheaper option for the same level of cover, consider making a switch.

“What a lot of people don’t realise is that if you are switching to the exact same level of hospital cover, you will not have to re-serve any additional waiting periods, which minimises the risk.

“While switching can be a pretty simple exercise, take the time to review your current policy to make sure it includes everything you want to be covered for. The government’s mandatory gold, silver, bronze and basic tiers make this a much simpler exercise than it once was, and while there might be procedures listed that you don’t think you’ll ever need, focus on the ones you do need.

“Similarly, check who is on your policy and whether it’s worth sticking together or going it alone. For a family where the kids have flown the coop, you might find you need silver cover and your partner needs gold, or vice versa, potentially offering up a saving. Check what fits your finances and your health best and make an informed decision.”

Single policy: potential savings from switching

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Average compared to minimum hospital insurance premiums – individual policies
State	Hospital Tier	Average	Min	Potential Savings
NSW	Basic	$1,105	$1,011	-$94 (-8.5%)
	Bronze	$1,342	$1,198	-$144 (-10.7%)
	Silver	$1,838	$1,600	-$238 (-13.0%)
	Gold	$3,639	$2,374	-$1,265 (-34.8%)
VIC	Basic	$1,111	$1,006	-$105 (-9.5%)
	Bronze	$1,428	$1,281	-$147 (-10.3%)
	Silver	$1,953	$1,679	-$274 (-14.0%)
	Gold	$3,942	$2,374	-$1,568 (-39.8%)
QLD	Basic	$1,113	$1,046	-$67 (-6.0%)
	Bronze	$1,419	$1,249	-$170 (-12.0%)
	Silver	$1,882	$1,615	-$267 (-14.2%)
	Gold	$3,816	$2,374	-$1,442 (-37.8%)
SA	Basic	$1,077	$981	-$96 (-8.9%)
	Bronze	$1,359	$1,208	-$151 (-11.1%)
	Silver	$1,837	$1,594	-$243 (-13.2%)
	Gold	$3,358	$2,374	-$984 (-29.3%)
WA	Basic	$861	$784	-$77 (-8.9%)
	Bronze	$1,043	$942	-$101 (-9.7%)
	Silver	$1,597	$1,402	-$195 (-12.2%)
	Gold	$3,197	$2,339	-$858 (-26.8%)
TAS	Basic	$1,110	$1,010	-$100 (-9.0%)
	Bronze	$1,418	$1,216	-$202 (-14.3%)
	Silver	$1,886	$1,594	-$292 (-15.5%)
	Gold	$3,483	$2,044	-$1,439 (-41.3%)
NT	Basic	$558	$387	-$171 (-30.7%)
	Bronze	$837	$634	-$203 (-24.3%)
	Silver	$1,292	$921	-$371 (-28.7%)
	Gold	$2,192	$1,640	-$552 (-25.2%)

Source: Canstar. Based on hospital insurance policies on Canstar’s database. Australian Government Private Health Insurance Rebate, Base Tier for under 65s based on an income of $103k (per ABS Average Weekly Earnings, Nov-24), of 16.192% has been applied to premiums. Premiums as of 5 June 2025.

Family policy: potential savings from switching

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Average compared to minimum hospital insurance premiums – family policies
State	Hospital Tier	Average	Min	Potential Savings
NSW	Basic	$2,203	$2,021	-$182 (-8.3%)
	Bronze	$2,714	$2,396	-$318 (-11.7%)
	Silver	$3,704	$3,199	-$505 (-13.6%)
	Gold	$7,189	$4,748	-$2,441 (-34.0%)
VIC	Basic	$2,212	$2,011	-$201 (-9.1%)
	Bronze	$2,894	$2,561	-$333 (-11.5%)
	Silver	$3,951	$3,358	-$593 (-15.0%)
	Gold	$7,765	$4,748	-$3,017 (-38.9%)
QLD	Basic	$2,223	$2,092	-$131 (-5.9%)
	Bronze	$2,851	$2,499	-$352 (-12.4%)
	Silver	$3,793	$3,230	-$563 (-14.8%)
	Gold	$7,540	$4,748	-$2,792 (-37.0%)
SA	Basic	$2,145	$1,961	-$184 (-8.6%)
	Bronze	$2,736	$2,416	-$320 (-11.7%)
	Silver	$3,710	$3,252	-$458 (-12.4%)
	Gold	$6,614	$4,748	-$1,866 (-28.2%)
WA	Basic	$1,700	$1,569	-$131 (-7.7%)
	Bronze	$2,105	$1,885	-$220 (-10.5%)
	Silver	$3,234	$2,860	-$374 (-11.6%)
	Gold	$6,299	$4,678	-$1,621 (-25.7%)
TAS	Basic	$2,209	$2,020	-$189 (-8.6%)
	Bronze	$2,862	$2,432	-$430 (-15.0%)
	Silver	$3,799	$3,252	-$547 (-14.4%)
	Gold	$6,877	$4,087	-$2,790 (-40.6%)
NT	Basic	$1,072	$774	-$298 (-27.8%)
	Bronze	$1,696	$1,268	-$428 (-25.2%)
	Silver	$2,652	$1,841	-$811 (-30.6%)
	Gold	$4,328	$3,280	-$1,048 (-24.2%)

Cover image source: Doidam 10/Shutterstock.com

This article was reviewed by our Finance Editor Jessica Pridmore before it was updated, as part of our fact-checking process.

Belinda Williamson

Group Manager, Corporate Affairs

Belinda is Canstar’s Group Manager, Corporate Affairs with responsibility for the company’s external communications strategy and media relations. A finance enthusiast who has worked in the financial services industry for more than a decade, Belinda is an experienced writer and media spokesperson who regularly contributes to the conversation on the finance topics that matter today through appearances on television and radio and in a multitude of print and online media articles. Belinda was previously Head of Corporate Affairs and company spokesperson at one of Australia’s largest and publicly-listed franchised mortgage brokers where she was responsible for the company’s internal, corporate, media, industry, government and investor communications. She has also worked in North America leading media relations strategies, influencer marketing campaigns and large-scale event projects for some of Canada’s most well-known tech, finance and real estate brands.