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With the increase in health insurance premiums outstripping inflation each year over the past decade, it’s vital that consumers shop around for a great value policy.
The ongoing increases in health insurance premiums make it increasingly difficult for households to fit health insurance within their budget, but rather than drop or reduce cover, just take an hour out of your week to research your options and ensure that the policy you have suits both your lifestyle and medical needs. Not all policies are created equal! Each year Canstar researches & rates hospital, extras and packaged private health insurance to uncover outstanding value for consumers. You can view our just-released 2013 report here.
Premium increases vary slightly on a state-by-state basis, with our current analysis finding that average increases over the past twelve months on surveyed funds have been as follows:
Premium increases, state by state
| State | Hospital Cover | Extras Cover |
|---|---|---|
| % Difference | % Difference | |
| Northern Territory | 6.17% | 3.00% |
| Tasmania | 5.97% | 3.56% |
| New South Wales | 7.32% | 3.64% |
| South Australia | 5.76% | 3.12% |
| Victoria | 6.61% | 3.17% |
| Queensland | 6.61% | 3.47% |
| Western Australia | 6.52% | 3.35% |
Source: Canstar health insurance star ratings September 2013
It’s important to note that these are average increases; there was a fairly wide variation between individual funds, with increases to hospital cover, for example, ranging from zero up to 16.56%.
Average cost state by state
We know that average premiums have increased across the board – but what?s the dollar value of average premiums in each state? Well, from cheapest to most expensive, the average health insurance premium for a family across the states is as follows:
| State | Average Family Premium 2013 | ||
|---|---|---|---|
| Hospital | Extras | Package | |
| Northern Territory | $1,891.54 | $956.62 | $2,811.07 |
| South Australia | $2,513.12 | $1,044.98 | $3,588.94 |
| Western Australia | $2,548.95 | $1,148.03 | $3,607.72 |
| New South Wales | $2,516.97 | $996.49 | $3,608.25 |
| Tasmania | $2,591.91 | $961.28 | $3,662.92 |
| Queensland | $2,730.60 | $962.44 | $3,773.99 |
| Victoria | $2,698.86 | $956.23 | $3,807.55 |
Premiums for private health insurance are governed by the cost of medical care in each state, the number of people in funds and the number of claims made in each state. So while the care provided may be the same, the potential cost to health funds of providing payment for that care can differ.
Who provides outstanding value?
As I said, not all health fund policies are created equal and our analysis has identified he funds that provide outstanding value for consumer, both on a national level and on a state by state basis. Click here to read our 2013 report.
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