Private health premiums to rise 3.25pct

People with private health cover will see their premiums rise by 3.25pct on April 1 under changes approved by the federal government.

Health insurance cards Source: Supplied

Private health insurers have been given the go-ahead by the federal government to hike their premiums by 3.25 per cent next year.

Health Minister Greg Hunt says the price rise is the lowest since 2001 and will come into effect on April 1.

Thousands of people have been downgrading or dumping their private health cover after feeling the pinch of annual premium rises and growing gap payments.