From 1 April, private health insurance rose by an industry average of 4.41% – the biggest hike since 2017 and above the rate of inflation.
But while that figure grabs the headlines, it doesn’t tell the full story for everyone.
Some customers saw significantly higher price jumps, with certain insurers lifting premiums by closer to 6% on average. Meanwhile, others kept increases closer to a 2% average.
The key word here is average and you may be one of the unlucky Australians who have seen their prices rise significantly above it. That may depend on factors including:
- your insurer
- where you live
- The type of policy you hold
- Any rebates you are or aren’t entitled to.
In other words, two people with similar cover could be paying very different prices this year.
How quickly the costs add up
In real terms, a premium jump of between 4-5% means:
- an extra $100+ per year for a standard hospital policy costing $2,641
- $170+ annually for combined hospital and extras cover costing $3,560.
*Averages based on policies purchased via Compare the Market between January and November 2025. Figures include rebates and age-based discounts as well as lifetime health cover loading where applicable.
And because these increases happen every year, it means those who stay loyal could be paying significantly more than people who switch cover more regularly.
The trap of sticking with the same insurer
For many households, reviewing health insurance isn’t high on the priority list.
But staying loyal could mean paying significantly more than necessary.
Recent data from Compare the Market’s Household Budget Barometer shows long-term customers are paying around 29% more than those who have switched in the past year.
Paying too much for health insurance?
Step 1: Select your current health fund below.
The funds displayed are for the top 10 largest health funds by market share in Australia as of April 2026.
Step 2: Compare from a range of funds when you answer a few basic questions.
Why premiums keep climbing
One of the biggest drivers of rising premiums is the increasing cost of healthcare itself.
As treatments become more advanced and demand for services continues to grow, insurers are facing higher costs, which are ultimately passed on to policy holders.
Add broader industry pressures and economic conditions into the mix and it’s little surprise that premiums continue to trend upwards. The worst part? Another round of health insurance price hikes will hit premiums again next April.
Choose your type of cover to see if you could be saving
You don’t have to just wear the increase
Sometimes, a few simple changes can make a real difference. Tweaking your level of cover, increasing your excess or trimming back extras you don’t use can all help bring costs down, without leaving you underinsured.
For others, the biggest savings come from comparing policies and making the switch.
In one case, a family saved more than $3,700 a year after reviewing their cover and moving to a policy that better matched their needs. That won’t be the outcome for everyone, but it shows what’s possible when you take a closer look.*
Finding cheaper health cover doesn’t have to be complicated with these tips
Think you’re getting a good deal? Don’t be so sure
Your policy might look competitive, but unless you’ve checked recently, you could already be overpaying. A quick comparison could uncover similar cover for less or better benefits without the higher price tag.
Those “switch and save” perks can add up fast
Insurers love rolling out deals to win new customers: think free weeks of cover, waived waiting periods. These offers can seriously boost value, but they’re usually reserved for people who switch, not those who stay put.
Paying for things you never claim? Time to trim the extras
High premiums don’t always mean better cover. If you’re not using certain features, you could be paying for nothing. Cutting back on unused extras can also bring your costs down while still keeping the cover you actually need.
Same name, different story
Two policies might sound almost identical, but the details can be worlds apart. Always check what’s included (and what’s not) before you commit, so you’re not caught out later.
Don’t set and forget your policy
Health insurance isn’t something you should leave on autopilot. Prices change annually and if you haven’t compared in a while, there’s a good chance you could find a better deal.
It only takes minutes to check
Comparing policies doesn’t have to be a hassle. With a quick online search or phone call with our comparison experts, you can understand your options and make sure you’re not paying more than you need to.
Review your health insurance regularly
It takes less than 2 minutes. Free to us and no obligation to change.
* Disclaimer: Premium Reduction based on family living in Qld, switched on 31/3/26. Silver Plus hospital with Extras. Includes Base Tier Australian Government rebate with no Life time Health Cover loading. Premium reduction based on lowering hospital cover from Gold to Silver Plus, increasing the excess and changing extras to a policy better suited to their needs, and may change with future rate rises.
