Private health insurers are preparing to ask the Albanese government to hike premiums by double what they received this year, creating a new political headache for Labor on the eve of a federal election likely to be dominated by cost of living pressures.

While final submissions will not be made until early November, multiple people with detailed knowledge of the discussions estimated private health insurers would seek an increase of between 5 and 6 per cent from April. If successful, it would be the highest increase in premiums since 2016.