One peak insurance body argues the modest rises are needed because of demand for healthcare.
The federal government's authorised rise in private health insurance premiums will leave families an extra $126 a year on average out of pocket.
The 2.74 per cent annual increase will take effect from April and builds on rises of almost three per cent this year and 3.25 per cent in 2019.
A single person will pay an extra $1.14 per week, and a family will pay $2.44 more a week.
The government returns about $6.3 billion to private health insurance holders through the private health insurance rebate scheme.
In 2019-20, Australians received a record $21.9 billion in benefits for medical services through the private health system.
