Family health insurance premiums set to rise by $180 a year

THE average Queensland family will have to fork out $180 more a year to keep their private health insurance from next week – an impost family’s like the Lams will acutely feel.

THE average Queensland family will have to fork out $180 more a year to keep their private health insurance, even after premiums had “the lowest increase in 17 years”.

It puts the annual bill for a family of four up to $4756 for hospital cover alone, and not including extras.

Singles don’t escape the pain and will face $84.94 on top of the $2150.99 they already pay, based on data from insurance comparison company finder.com.au.

The average 3.95 per cent premium rise comes in from April 1, but how much more an individual pays will depend on their insurer.

Medibank and Bupa each have about a third of the state’s health insurance market, according to the Commonwealth Ombudsman’s State of the Health Funds 2017 report.

Joe Lam and Caroline Toh with children Livi, 7, and Liam Lam, 3. Picture: AAP/John Gass

Bupa’s increase is 3.99 per cent, just above average, while Medibank’s is up 3.88 per cent.

HCF, the next biggest health insurer in Queensland, will put its premiums up by 3.39 per cent, while Australian Unity will rise by 3.89 per cent.

The highest increase is Health Care Insurance Ltd at 8.9 per cent, while CBHS Corporate Health is the lowest at 2.38 per cent.

Private Healthcare Australia chief executive Dr Rachel David said insurance regulator the Australian Prudential Regulation Authority heavily scrutinised every health fund’s requested increase. She said it was illegal for insurers to vary their charges based on a person’s health risk, but the age when someone signed up could make a big difference to price.

“If they join after they turn 30 years old, under the lifetime cover scheme, they pay a higher premium for 10 years,” she said.

A newcomer to private health will pay a 2 per cent loading on top of their existing premium for every year they are aged over 30.

Health Minister Greg Hunt said the Government was putting downward pressure on insurance costs.

Caroline Toh and husband Joe Lam have two kids – Livi, 7, and Liam, 3 – and pay more than $200 a week for various insurance fees.

They say health insurance is important but the cost can be a burden – some weeks the family spends more on insurance than groceries.

“If the price hike is significant, we would definitely be shopping for other insurance options,” Ms Toh said.