There’s an annual charade around the rising cost of private health insurance, and it’s orchestrated by the federal government and the private health funds.months of negotiations
This is where the charade begins. The health minister announces the average cost by which private health insurance premiums will rise. From April 1 this year, the average increase across all health funds’ premiums will be 3.03 per cent. In the past week, many private health insurance customers have received letters by email or mail informing them of their premium increases that come into effect next month. For many, the premium increases will be above last year’s annual average wages growth and inflation.
HCF and NIB, the third and fourth-largest health funds respectively, were transparent. HCF said 55 per cent of its policyholders would receive a price rise at the average of 2.89 per cent or less. NIB said 52 per cent of its policyholders would pay its average premium increase of 4.1 per cent or less.