Private health insurance premiums could rise by up to seven per cent, with the government unlikely to block a hike request.
Health Minister Sussan Ley will decide by April 1 whether to approve a request by private health insurers to increase premiums by six to seven per cent for 2015.
Prime Minister Tony Abbott on Thursday said the government "almost never" interfered with annual premium rises, indicating the request would likely be granted.
"In the end this is a commercial decision," Mr Abbott said.
"It is up to the market to set the price."
However, Ms Ley said it would be premature to speculate on premiums until an independent industry regulator had assessed the insurers' claims.
The government assesses annual requests by private health insurers to hike premiums, in line with the expected cost rise for private medical care.
Last year, the government approved an average premium increase of 6.2 per cent.
Private health customers who earn under certain salaries are eligible for rebates to partially cover premium costs.
Australian Medical Association President Brian Owler said it was vital to keep premiums down.
"It's really important that we make sure that private health insurance is affordable and that we have a strong private health system," he told reporters in Canberra.
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