Why are my health insurance premiums increasing this October?

Health insurance premiums are set to rise on 1 October 2020. If you thought you’d escaped the dreaded annual rate rise on your premiums, think again.

April’s premium increase was only postponed, not cancelled, and the majority of funds are expected to increase their prices this spring. The good news is you can take action now so you’re not slugged with an inflated price hike.

Ready to save money with a better deal on your private health cover? Click below to get started.

*Average savings based off 20,400 customers during 2019

And if you want to find out just why your premium could be going up, and how to tackle it, read on.

What’s the deal with health insurance price hikes in 2020?

You’re probably already painfully aware that private health insurance premiums go up on 1 April every year. In 2020, however, consumers were given a temporary reprieve with most health funds postponing the annual rate rise until October due to the COVID-19 pandemic.

While this brought household budgets some temporary relief during a tough time, these annual premium increases add up.

For example, if you were paying $2,000 in annual premiums on your health insurance policy in 2013, you’d now be paying $2,908 for the same policy today. That’s a 45 per cent price hike over the last seven years.

How much more will I be paying in 2020?

Like it or not, health insurance premiums are set to increase again. Assuming the rate rise stays the same as April’s planned premium increases, health insurance providers will stick consumers with an average price rise of 2.92% from 1 October.

However, actual price hikes will vary widely between health insurance providers. Based on April’s figures, premium increases could range from a low average of 1.98% right up to 5.63% depending on your health insurance provider.

Where does your current health insurer fall in this range? Check out our health insurance rate rise calculator to find out. Go on, we’ll wait.

What can I do about it?

Done a quick calculation and not pleased with your result? We don’t blame you. Fortunately, your finances don’t have to take an extra hit.

That doesn’t mean cancelling your private health insurance. Getting rid of your health insurance could expose you to Lifetime Health Cover loading or the Medicare Levy Surcharge, and could increase your wait for elective surgeries.

Instead, you can make significant savings while keeping your private health insurance. All you need to do is compare providers and find a better deal to switch to.

And if you move to a cheaper equivalent policy, you won’t have to serve any new waiting periods. That should put a smile back on your face.

How do I compare health insurance providers?

That’s what Health Insurance Comparison is here for. Our team of experts is standing by to help you find the best health insurance deal for you from our panel of trusted insurers. We take care of the process from start to finish, including all the paperwork.

In fact, we saved our customers an average of $380.79* when they switched to a new insurer in 2019. That’ll certainly take the sting out of this year’s annual health insurance premium increase.

Get Started Now:

Step 1: Select your state below .
Step 2: After answering a few questions, you will have the opportunity to compare quotes in your area and could be eligible for significant savings.

Choose your area.

Which area are you in?

*Average savings based off 20,400 customers during 2019

Don’t let your health fund hit you with another price hike. Take the power back before 1 October and head to our comparison tool to find the best deal on your health insurance.

*Based on 20,400 customers during 2019.

This article is opinion only and should not be taken as medical or financial advice. Check with a financial professional before making any decisions.

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