Australians are being hit with a major warning about their health insurance premiums for next year. If you’ve got private health insurance, you might want to brace yourself for a price hike that could be tougher to swallow than usual.
Big Premium Increases Coming in 2026
Private health insurance premiums are set to rise on April 1, 2026, and for many, the impact is going to sting. About 15 million Australians will see their rates go up, with premium increases predicted to hit anywhere from 3.9% to 4.4%. For the average single policyholder, that could mean an extra $127 to $144 a year, while families will be looking at an additional $191 to $216 annually, reports Yahoo Finance.
Health Insurance ‘Shock’—What It Means for Your Wallet
It’s not just the numbers that make this price hike a problem—it’s the timing. After years of relatively modest increases, experts say this will feel like a “shock” to many policyholders. Chris Whitelaw from Money.com.au points out that for many Australians, these rising costs are coming at a time when household budgets are already stretched thin. For some, this might even be the tipping point, where they start questioning whether private insurance is really worth it.
Struggling to Keep Up
Whitelaw adds that this price increase is just one more thing people have to juggle. “It’s another $100, $200… whatever the impact is on that particular policy,” he said. “It’s just more money that people don’t really have at the moment.” This is especially true for single-income families or those living paycheck to paycheck. They might find themselves struggling to cover basic needs, let alone additional insurance premiums.
People Already Downgrading Policies
This price rise comes after a trend that’s already been taking shape—many Australians are downgrading their policies or even opting out of private health insurance altogether. In fact, over 216,000 policies were downgraded in the first half of 2024. This trend suggests that people are becoming more reluctant to pay for health cover they’re not sure they can fully use or afford.
The rise in premiums follows last year’s approved increase of 3.73%, the biggest since 2019. While Health Minister Mark Butler rejected even higher increases of 5-6%, the 2026 hike is still expected to hurt. It makes you wonder: will Australians start turning to public health services more, or will they stick with private insurance in the long run?
What Should You Do?
With all this in mind, it’s a good idea for anyone with private health insurance to start reassessing their cover. Is it still worth it? Are there cheaper alternatives? It’s a lot to think about, but with the price hikes coming, it’s definitely something worth considering before the changes go into effect.
