Private Health Insurance Premiums Rise 3.73% in Australia

The Australian federal government has approved an average increase of 3.73% in private health insurance premiums, effective April 1, marking the highest rise in seven years. Health Minister Mark Butler stated that this decision followed a rigorous review process to ensure the increases were justified for the approximately 15 million Australians covered. Insurers like nib and Medibank announced even higher increases of 5.79% and 3.99% respectively, citing rising hospital costs and wages as primary drivers. Opposition health spokeswoman Anne Ruston criticized the timing, claiming policyholders have limited opportunity to compare options before the hikes take effect. As the cost-of-living crisis continues, some consumers may reconsider their coverage, with surveys indicating a significant portion are likely to shop around due to the premium increases. The insurance industry faces scrutiny as it navigates these changes amidst growing economic pressures on households.