Health Minister Mark Butler calls on private insurers to revise premium rises

Private health insurers have been told to “sharpen their pencils” and provide a more “reasonable” price hike which will come into effect on April 1.

Health Minister Mark Butler has rejected suggested private health insurance premium increases for the second time, calling on a number of companies to suggest “a more reasonable figure” ahead of the April 1 deadline.

The second rejection comes after he rejected the first round of increases of up to 6 per cent, nearly double the 2024 increase of 3.03 per cent.

The scheduled increase will likely pose a growing headache for Labor in the lead up to this year’s yet-to-be-announced federal election, with cost-of-living set to be the key issue facing politicians.

Mr Butler said any proposed increases needed to be “justified and proportionate”.

“In December, I wrote to every single one of the 29 insurers asking that they sharpen their pencils and provide us with an increase that was more in the interests of their members,” he said.

“Based on the resubmissions the Department of Health received, I am not inclined to currently approve their proposed premium increases.

“I’ve written to a number of private health insurers and asked them to resubmit a more reasonable figure that is in the best interest for Australian consumers.”

Health Minister Mark Butler holds a press conference at Parliament House in Canberra. Picture: NewsWire/ Martin Ollman

The Coalition’s health spokeswoman Anne Ruston said Mr Butler needed to provide households with “early and transparent advice” so people could plan their budgets accordingly.

“Unlike last year when the government hid the rise until after the Dunkley by-election, leaving more than 14 million Australians with minimal time to plan for the cost hike,” she said.

“Higher premium increases for the more than 14 million Australians with private health insurance would be another cost-of-living blow, at a time when families are already struggling to afford the rising cost of healthcare.”

Originally published as Health Minister Mark Butler calls on private insurers to revise premium rises