People with private health cover will see their premiums rise by an average of 3.25 per cent next year under changes approved by the federal government.
Health Minister Greg Hunt says the price rise for the 13 million Australians with private health cover is the lowest since 2001 and will come into effect on April 1.
"This premium change will see a single person will pay an average of $1.14 extra per week and a family on average will pay $2.35 more a week," he said in a statement on Wednesday.
Medibank Private premiums will rise by an average of 3.3 per cent, which is more that the government average, but the insurer said it was its lowest price hike in 18 years.
Thousands of people have been downgrading or dumping their private health cover after feeling the pinch of annual premium rises and growing gap payments.
Premiums rose by just over 50 per cent between 2010 and 2016, before climbing another 3.9 per cent in 2017.
In its annual review of the private health insurance industry released in November, the Australian Competition and Consumer Commission found more Australians are downgrading or dumping their private health insurance because of rising premiums.
Labor has vowed to slap a cap on big health insurers that will restrict their annual premium rises to two per cent if it wins the next federal election.
The federal government meanwhile has introduced its own reforms, including new rules that allow private health insurers to offer 18-to-29-year-olds discounted premiums, as well as better mental health cover for all customers and benefits for people in rural areas who need to travel for medical treatment.
The government has also set up a new rating system to make it easier for people to choose private health cover.
The minimum hospital treatments covered by the new policy bands - Gold, Silver, Bronze and Basic - will come into place in April.
Medibank chief executive Craig Drummond said the reforms will lead to lower increases in premiums for many customers and offer them "greater choice".
"The challenge remains, as to how we can continue to deliver quality healthcare in Australia, at an affordable price," he said.
"Healthcare costs in Australia have been tracking at an average of 4.6 per cent above inflation each year over the past 10 years, largely driven by more frequent and more expensive hospital admissions and a population that is getting older."
Source AAP
Share
