Almost one-in-four Australians are considering dumping their private health insurance after the federal government gave the go ahead for premium hikes.
One-in-three people with private health cover are also considering switching insurers before the price hikes hit on April 1, a survey by online comparison website finder.com.au shows.
Spokeswoman Bessie Hassan said the cost of private health insurance was outweighing the benefits for thousands of policyholders.
""When the increase takes effect on 1 April average health insurance costs will have jumped by over 50 per cent since 2010, causing financial strain for many Australians," she said on Monday.
The survey of 2031 people found 36 per cent were considering switching health insurance providers to find a better deal, while 22 per cent said they would abandon their cover altogether if their health fund raised their premiums by more than five per cent this year.
Australians will pay an extra $191 on average this year in health insurance premiums, with the average cost of hospital and extras cover expected to rise to $4138.50, according to finder.com.
Health Minister Greg Hunt last week approved an average premium rise of 4.84 per cent from April, meaning the cost of family health cover could rise by up to $200 a year.
While the average increase is the lowest in a decade, the cumulative impact over that time is about 50 per cent - three times the rate of inflation.
Ms Hassan said each health insurer would hike its premiums by different amounts and she urged Australians to shop around for the best deal.
