More than 15 million Australians are bracing for a financial hit as the Albanese government greenlights a 4.41% average increase in private health insurance premiums, the largest jump in eight years.
Set to take effect on April 1, the hike outpaces inflation and adds fresh strain to households already reeling from recent interest rate rises and a cost-of-living crisis.
Health Minister Mark Butler defended the decision, noting that the increase reflects a 5% surge in the cost of medical and hospital services over the last financial year.
While Butler emphasised that the government "must put consumers first," the reality for many is stark: major providers like NIB (ASX:NIB) and Medibank (ASX:MPL) will see premiums climb by 5.47% and 5.1% respectively, well above the national average.
“The government understands the pressure health insurance premium changes put on Australians, and decisions about private health insurance premiums must put consumers first,” he said.
Opposition health spokeswoman Anne Ruston slammed the move, labeling it a "hit families cannot afford" and pointing to record-high out-of-pocket GP costs.
However, industry body Private Healthcare Australia argues the spike is unavoidable as claims for high-cost treatments, such as cancer care and joint replacements, skyrocket.