Private health insurance prices in Australia are set to increase on April 01, potentially impacting nearly 14 million Australians. As a result, policyholders are being urged to consider switching rather than ditching policies so that they remain protected during and post-COVID-19.
Federal Health Minister Greg Hunt revealed that premiums would increase by an average of 2.74%, which will cost the average family about $127 a year, and the average individual $59.
“I think it will be tough for a lot of families,” said Consumers Health Forum of Australia chief executive Leanne Wells, as reported by 9News.
Last year, the Federal Government revealed that over 29,000 Australians cancelled their private health insurance, with many young people claiming that the product was not worth it anymore. However, the insurance industry emphasised that ditching insurance could lead to more financial stress.
The Australian Prudential Regulation Authority’s (APRA) quarterly private health insurance report published last month found a 13% increase in out-of-pocket expenses for hospital treatment than the previous year.
“We do encourage Australians who are struggling with the cost of private health insurance to consider switching rather than ditching,” iSelect spokeswoman Jessie Petterd commented, as reported by 9News.
Wells added that some premiums might cost more in the long run, so customers must not fall for gimmicks.
