Media Release: Decade-High Private Health Cost Hike Takes Effect

The Albanese Labor Government’s latest cost hike on the 15 million Australians who rely on private health insurance takes effect today, with premiums rising by 4.41 per cent in the middle of an escalating cost-of-living crisis.

Shadow Minister for Health and Aged Care Senator Anne Ruston said today marks the start of the largest increase to private health insurance premiums in almost a decade, and it comes in above the rate of inflation.

“From today, families will be paying more for their private health insurance at a time when household budgets can least afford it,” Senator Ruston said.

“Whether it’s at the petrol bowser or when paying their energy and insurance bills, the cost-of-living pressures on Australian families continue to mount under Labor.

“This premium increase is just another hit families simply cannot afford. It comes on top of the rising out-pocket cost to see a GP, which has risen to more than $50 on average for the first time in Medicare’s history.”

Senator Ruston said that the Coalition supported a strong private health system in Australia, working hand in hand with the public system to ensure Australians have choice and timely access to the healthcare they need. 

“But today’s increase shows we are heading in the wrong direction, and this could have a serious impact on our entire health system,” Senator Ruston said.   

“More and more families are having to make the difficult decision to either reduce their private health cover or abandon it all together because of this government’s economic mismanagement.”

Australia has already recorded a mass exodus of gold private health cover, with 383,000 people abandoning their top-tier cover in the last five years.

“This is eroding the choice and accessibility that Australians deserve from their health system,” Senator Ruston said.

“If Australians cannot afford private health insurance, this will only add more pressure to our already overburdened public hospitals.”

The Coalition is calling on the Albanese Labor Government to focus on restoring the strong public-private partnership that has long underpinned Australia’s world-class health system.

ENDS