Hikes to private health insurance premiums

More than 13 million Australians will see their private health insurance premiums hiked by 3.25 per cent next year.

Minister for Health Greg Hunt has hailed the changes to private health insurance premiums. Picture: AAP Image/Mick Tsikas

More than 13 million Australians will see their private health insurance premiums hiked by 3.25 per cent next year, but it will the lowest increase in decades.

As revealed by The Weekend Australian earlier this month, it is the lowest premiums change lowest since 2001, when insurers agreed not to raise premiums in exchange for government reforms

Health Minister Greg Hunt today hailed the change and that premiums had decreased by 40 per cent since the Coalition came to power in Canberra in 2013.

“This is the smallest change since 2001 and significantly lower than the 4.1 per cent inflation for medical and hospital services this year,” he said.

“In addition, from 1 April 2019 insurers will also be able to offer youth based discounts of up to 10 per cent for 18 to 29 year olds.

“For a consumer on a $1,500 policy the savings will be up to $150 a year and for a young family on a $3,000 policy the savings will be up to $300 a year.”

The government has also announced new gold, silver, bronze and basic product tiers for hospital insurance from early next year.

The Weekend Australian reported earlier this month that the new categories may compel some members to pay even higher premiums or dump their policies.

But Mr Hunt said today the reforms would make health insurance cheaper and easier to understand.

“These reforms will make private health insurance simpler and more affordable and make it clearer on what is and isn’t covered in their policies,” he said