Health insurance premiums to rise in 2022 by the lowest margin in two decades

Private health insurance premiums will increase next year by 2.7% on average, the smallest average annual change in premiums for Australians since 2001.

As of April 1, 2022, health insurance premiums will increase by an average of 2.70% across the industry throughout the new year.

The premiums of major for-profit health insurance providers such as BUPA, Medibank and NIB will increase by 3.18%, 3.10% and 2.66% respectively.

CBHS Corporate Health hit the member’s back pocket the hardest with an increase of 5.33%, marking the largest among for-profit funds.

On the other hand, the increase in premiums for the nonprofit Medicare fund of 1.09% is expected to be the smallest for 2022.

Health and Elderly Care Minister Greg Hunt has said that under the proposed arrangements, many consumers will not get a premium change until later in 2022.

“As Priveted health insurers continue to face the impacts of the pandemic, oproviding COVID-related reimbursements, deferring premium rate increases and other measures support better care and improve affordability, ”said Minister Hunt.

“In the lowest premium changes in 21 years, effective April 1, 2022, a single person will pay an average of $ 1.12 more per week, and a family $ 2.42 more per week.”

With the Australian government continuing to invest $ 6.7 billion annually through reimbursement from private health insurance, Minister Hunt said In 2020-2021, Australians received a record $ 22 billion in benefits for medical services through the private health insurance sector.

For-profit organizations participate in the season of giving

Nib chief executive Mark Fitzgibbon said although premiums have been approved to change from April 1, 2022, the health insurer is considering postponing premium increases in recognition of the continued impact of COVID- 19 on its limbs.

“It is possible that the increase will be delayed for about three months depending on developments,” said Mr Fitzgibbon.

For-profit fund Medibank remains on the same page with its competitor, returning approximately $ 135 million in ongoing net savings from COVID-19 claims to customers by delaying next year’s premium increases by 5 months .

The postponement of Medibank’s premium increase is funded by additional net savings on COVID-19 claims since June 30, 2021.

Medibank CEO David Koczkar said putting a 5 month break on premium increases will save clients an average of $ 93 on hospital and extras policies and around $ 8 on extras policies.

“While we know that no one likes their premiums going up, health care costs continue to rise at a rate well above general inflation,” Koczkar said.

The 5-month postponement of premium increases will be applied automatically to 2 million active clients of the Medibank and Ahm hospital policy and / or extras on April 1, 2022.

Image by Jonathon Borba via Unsplash.