nib Holdings (ASX:NHF) has announced a 5.47% average increase in health insurance premiums for 2026, following approval from the Minister for Health and Aged Care.
The company noted that for over half of its policyholders, the adjustment will amount to an additional $3.80 or less per week, as they strive to balance affordability with the escalating costs of medical services.
According to CEO and Managing Director Ed Close, the hike is a direct response to a significant surge in healthcare utilisation and sector-wide inflation.
In the 2025 financial year, nib paid out over $2.3 billion in claims—a nearly 9% increase over the previous year—covering 400,000 hospital admissions and 4.3 million visits to ancillary providers like dentists and optometrists.
Close emphasised that the rising cost of hospital payments and a higher volume of customer claims continue to outpace general inflation.
The company reported that nearly 80% of its customers now benefit from "no gap" or "known gap" payments through expanded provider networks.
Additionally, nib's preventative health initiatives saved over 24,000 hospital bed days last year by supporting 22,000 members with chronic illnesses through in-home care.