Leading private health insurance companies, including HCF, AIA Health, and Medibank, have announced adjustments to their premium rates effective from April 1, 2024.
HCF is set to adjust its premiums by an average of 2.89%.
CEO Sheena Jack addressed the challenge of managing rising healthcare expenses while striving to keep insurance affordable for its members.
“As Australia’s largest not-for-profit health fund, we’re pleased to be able to keep this increase so low, which is less than the other major funds and inflation,” she said. “The escalating costs of delivering healthcare services, whether it be public or private, in Australia or globally is an increasing challenge for everyone. In fact, the cost of all healthcare is expected to increase more than any other category as a share of GDP over the next 40 years.”
Jack further discussed HCF’s strategy to alleviate the financial burden on members.
“As a not-for-profit and leading for-purpose organisation, we don’t have to provide a shareholder return, making it possible for us to sustainably operate on lower margins and stay focused on maximising affordability and value for our members,” she said.
AIA Health announced an increase of 2.19% in its monthly premiums.
The company stated that it enhances member benefits through the AIA Vitality program, rewarding policyholders for healthier lifestyle choices, which can also lead to premium reductions. Celebrating a decade of AIA Vitality, the insurer showcased the program’s impact on promoting health and wellness among its members.
Medibank disclosed a premium hike of 3.31%, asserting that the adjustment is below the rate of inflation and less than the industry’s 10-year average increase.
Chief customer officer Milosh Milisavljevic emphasised the insurer’s commitment to mitigating the impact of healthcare cost inflation on customers.
“We know many households are doing it tough at the moment, and our focus has been to balance the impact of rising health costs with the need to keep premiums affordable for our customers,” he said. “Premium increases are never welcome, which is why we have worked hard to ensure this year’s is as low as it can be, despite rising health costs in the private system. It’s also lower than the price rises seen in other insurances, such as car and house insurance.”
