Private health insurance premiums to rise 4.41% from April in biggest hike in almost a decade

Australians with private health insurance will face higher bills from April after the government approved an average premium increase of 4.41%, described as the largest hike in almost a decade. The rise comes as households manage a broader cost-of-living squeeze.

For many families, private health insurance is already one of the most debated recurring expenses: it can provide faster access to elective procedures and more choice in hospitals, but premiums have risen steadily over time and out-of-pocket costs can still be significant. The latest increase is expected to intensify the question many consumers ask each year-whether keeping private cover is worth it.

The increase is likely to prompt some Australians to downgrade policies, raise excess levels, or drop cover altogether-choices that can reduce immediate household costs but may increase exposure to future medical bills or longer waits in the public system.

The premium decision also lands in a politically sensitive window. Health affordability is a frequent election battleground and insurers, hospitals and governments often argue about what drives increases: hospital charges, utilisation, ageing demographics, and rising treatment costs. Consumers, meanwhile, mostly experience it as a direct debit that grows faster than wages.

For policy makers, the challenge is balancing sustainability and fairness. If premiums rise too quickly, participation can fall-shrinking the risk pool and placing additional load on public hospitals. If premiums are restrained artificially, insurers argue the system becomes less viable.

With April approaching, consumer advocates typically urge people to compare policies, check what they actually use, and ensure they understand exclusions-because cheaper cover can sometimes mean fewer benefits when it matters most.