Health Premiums To Rise An Average 4.84% In 2017

Health Minister Greg Hunt has confirmed that health insurance premiums will rise an average of 4.84% in 2017.

The approved rise means privately insured individuals will be paying an extra $2 per week for health insurance on average, according to the government.

Privately insured families will be hit with an average increase of around $4 per week.

Minister Hunt pointed out that the industry average rise of 4.84% is the lowest health premium increase in a decade.

“The Turnbull Government’s action to keep the pressure on private health insurers has helped drive the lowest premium price rise in ten years – lower than any year under the Rudd and Gillard governments,” he said.

“Meanwhile, the amount of benefits paid out by private health insurers increased 5.4 per cent over the last financial year.”

Despite being the lowest premium hike in a decade, many of the 13 million Australians with private health insurance will struggle to cope with another rise to their cost of living pressures.

Hunt said he is determined to do more to get better value for families.

“As the new Health Minister, I will work with insurers over the next year to find ways insurers can deliver more value for customers without compromising on the quality of cover,” he said.

“It is essential for the health of our nation that we continue to maintain a strong and competitive private health insurance market.

“There are 34 private health insurance funds operating in Australia and consumers are encouraged to shop around to get the best deal for themselves and their families.”

How much will your health fund raise premiums by?

Source: Department of Health

How do this year’s increases compare to last year’s?

Labor’s response: “Turnbull ripping Australians off at every turn”

Shadow Minister for Health and Medicare, Catherine King, said the premium rise will see Australian families paying an extra $200 per year.

“Australians are paying more than ever for their private health insurance but they are getting less and less, and the Liberals have done absolutely nothing to help families with the costs of health,” King said.

“This $200 increase comes on top of some of the highest premium increases on record, spiralling complaints against private health insurers, and Australians increasingly discovering they are simply not covered for basic inclusions in their policies.

“Quite simply, Malcolm Turnbull is ripping Australians off at every turn. Australians are paying more than ever to visit a GP, they are paying more than ever for private health insurance, and yet the Government is still refusing to lift the GP freeze and invest more in health.”

.@TurnbullMalcolm concedes a rise in private health insurance premiums, approved by his government, will hit families hard. #9News pic.twitter.com/TD7AxIPssi

— 9News Australia (@9NewsAUS) February 10, 2017

Private Healthcare Australia: ‘Lowest rise in decade reflects commitment to delivering affordable healthcare’

Private Health Care Australia, the industry’s representative body, said health funds remain committed to working with the government to improve the affordability of the private health sector.

CEO of Private Health Care Australia, Dr Rachel David, said no one liked to see premiums go up but stressed that health fund members continue to get value for their investment.

Dr David said 86.1 cents in every dollar of premium income is returned to members as benefits, which compares favourably with 67 cents for property insurance and 62 cents for general insurance (car and home insurance).

“Health sector costs are rising faster than CPI inflation, and key components of health inflation such as the cost of medical devices are beyond the control of health funds,” Dr David said.

“Health funds [and] other private sector stakeholders like hospitals and medical specialists need to work with Australian Governments to keep input cost down and bend the relentless upward curve of health inflation.

“Consumers questioning the value of PHI should ask themselves – could I afford over $20 000 for hip or knee surgery, or would I be able to spend almost a year in pain on a public waiting list?

“These are common procedures health funds help their members access every day, and the reason why PHI members value the security and peace of mind they get from knowing they can have surgery when they need it.”

Source: Private Healthcare Australia, AIHW