Victorians pay highest premiums for private health ­insurance

VICTORIANS are paying more for private health ­insurance than any other state, new data has revealed. And prices are set to rise even more this weekend.

VICTORIANS are paying more for private health ­insurance than any other state, new data shows.

Ahead of price increases of 3.95 per cent this Sunday, ­research from comparison site finder.com.au reveals Victorian families are already shelling out $4786 a year for health insurance.

That is $300 more than families in NSW and $1400 above the average premium in the Northern Territory.

Figures obtained by the Herald Sun show the average annual policy for single Victorians costs $2206, compared to $2071 in NSW.

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Australian Medical Association president Dr Michael Gannon

Despite the steep charges copped by Victorians, the site’s survey of more than 1200 people found only one in four had switched providers in the last five years to get a better deal.

This year’s average premium increase is the lowest since 2001 but will still cost families an extra $140 over 12 months.

Customers can lock in better deals if they pay their annual premiums upfront to avoid the April 1 price rise. But the survey also found that 81 per cent of Victorians were not planning to pay in advance.

Finder.com.au insurance expert Bessie Hassan said there were several reasons why Victorians were paying more for private health insurance, with costs affected by different regulations elsewhere.

“Other influencing factors include hospital costs, and even discrepancies between gap payments from specialists. States with older populations also typically see more expensive cover overall, which could be another reason why Victorians pay more,” she said.

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Minister for Health Greg Hunt. Picture: AAP Image/Mick Tsikas

Labor has made private health insurance a key issue for the next federal election, with opposition Leader Bill Shorten promising to cap price increases at 2 per cent, saving families an average of $340 over two years.

Health Minister Greg Hunt said this year’s increase was the lowest in almost 20 years.

“We must continue to drive better-value policies for every Australian. Private health insurance is an essential and valuable part of the health Australian system,” Mr Hunt said.

Australian Medical Association president Dr Michael Gannon warned people to choose their insurance carefully, saying some “junk policies” would not provide cover that “consumers expect when they need it”.

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