Health insurance premiums in Australia are set to rise about 4% in 2026

A premium increase in this range would add around $82.6 to $93.6 a year for singles.

Health insurance premiums in Australia are expected to rise by about 4% in 2026, estimating an increase between 3.9% and 4.4%, according to a Money.com.au report.

“If health inflation stays near the 4% mark this year, the 2026 premium hike could fall in line with, or even surpass health price inflation,” the report stated.

A premium increase in this range would add around $82.6 (A$127) to $93.6 (A$144) a year for singles on a combined hospital and extras policy, and $124.2 (A$191) to $140.4 (A$216) for families.

These estimates are based on current average annual premiums of $2,121.6 (A$3,264) for single policies and $3,190.2 (A$4,908) for family cover.

Money.com.au’s general manager of health insurance, Chris Whitelaw, said the expected rise marks a return to stronger premium adjustments after several years of lower increases. 

He noted that the change may prompt more Australians to downgrade or cancel their policies as affordability pressures build.

Health funds submitted their proposed 2026 premium changes to the Federal Health Minister last week. 

The government will set the industry-wide average increase ahead of the 1 April adjustment. Individual insurers may apply higher or lower increases, meaning some policyholders could see changes that differ from the headline figure.

($1.00 = A$1.53)