Australian health premiums set to rise by 3.73% in April

The premium changes take effect on 1 April.

The Australian Government has approved an average private health insurance premium increase of 3.73% for 2025, following a review of insurer submissions.

The premium changes take effect on 1 April.

The decision comes after insurers were asked to resubmit their claims three times, with the government citing record industry profits as a key factor in securing a lower increase.

Health minister Mark Butler emphasised that the government scrutinised insurer proposals to ensure a fair outcome for policyholders.

The approved increase is lower than the 6.20% rise approved by former Health Minister Peter Dutton in 2014, which remains the largest in two decades.

The government also highlighted Dutton’s decision to freeze private health insurance income tiers in 2014, which led to higher taxes and reduced rebates for policyholders until indexation resumed in July 2023.

Around 15 million Australians hold private health insurance, with premiums totaling $18.538b (A$29.9b) in the year to 30 September 2024.

The government will provide $4.712b (A$7.6b) in rebates to policyholders in 2025.

($1.00 = A$1.61)