Millions of Aussies to cop $3,060 price hike from today: ‘Rude shock’ – Yahoo

Australians with private health insurance will see their premiums rise today. The fresh cost-of-living blow will increase premiums by an average of 3.73 per cent, the biggest increase in seven years.

Singles will pay $110 more a year for the average gold hospital cover, Canstar analysis found, bringing the average cost to $3,060. Families will be hit with an extra $217 per year for the average gold policy, with new premiums costing $6,040.

Compare the Market economic director and Yahoo Finance contributor David Koch said the price hike may come as a “rude shock” to Aussie budgets and could mean some are paying “hundreds more”.

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While price hikes will kick in today, he said there are still ways the more than 14 million Aussies with a health insurance policy can save.

“Run a quick comparison and see if you can beat the rate rise heat by switching to a cheaper deal,” Koch said.

“You might even find a policy that’s not only much more budget-friendly, but delivers much better value.”

Koch said new customers may benefit from offers and incentives. Other ways to save include increasing your excess, switching to a lower level of cover, and getting rid of unnecessary extras.

Costs will increase by an average of 3.73 per cent, but some of the country’s insurers will hit their customers with far higher hikes, while others have escaped with lower rises.

Here’s what the “Big Five” insurers are increasing premiums by:

• Bupa – 5.1 per cent

• Medibank – 3.99 per cent

• HCF – 4.95 per cent

• NIB – 5.79 per cent

• HBF – 2.8 per cent.

The highest average price hike is from Police Health at 9.56 per cent, while the lowest is from HIF at 9.1 per cent. Both are not-for-profit insurers.

Private health insurance premiums rise once per year and need to be approved by the federal Health Minister.

Health Minister Mark Butler said he asked insurers to resubmit their claims three times and took the insurers’ “years of record profits” into consideration when setting the 3.73 per cent average.

The Australian Taxation Office (ATO) has warned Aussies to think twice before cancelling their private health insurance policies and to consider the tax implications at play.