Millions of Australians are expected to abandon their private health insurance this year as rising premiums place further strain on household budgets, new research suggests.
From April 1, health insurance premiums will increase by an average of 3.73 percent – the sharpest rise in seven years – potentially forcing many policyholders to reconsider their coverage, MSN reported.
According to a survey by comparison site Finder, 16% of Australians, or approximately 3.3 million people, intend to cancel their policies in 2025 in search of more affordable alternatives. Meanwhile, 41 percent of respondents said they would remain with their current insurer, while nearly a quarter reported not having private health coverage at all.
The latest hike means the average single-person policy will rise by $72 per year, bringing the annual cost to roughly $1,848.
“Australians are abandoning their health insurance in large numbers as they grapple with the mounting pressures of rising living costs," said Tim Bennett, health insurance expert at Finder. Bennett advised that instead of cancelling, policyholders could consider reducing their coverage or comparing plans to find more suitable cover.
The research indicates younger Australians, particularly those aged 18 to 35, are the most likely to forgo private health insurance, MSN reported.
With the price increase imminent, Bennett suggested now is the time to assess alternative providers.
“Dropping private health insurance may save money in the short term, but it risks significant out-of-pocket costs, longer waiting times, and limited access to essential services,” he said.
