In March 2025, the federal government approved an average industry premium increase of 3.73%. However, some insurers have announced hikes exceeding this average, with BUPA increasing premiums by 5.10% and NIB by 5.79%. These increases come at a time when many Australians are grappling with a cost-of-living crisis, leading to accusations of 'price gouging' by the insurance industry.
The Australia Institute has highlighted that major insurers are reporting substantial profits while simultaneously raising premiums. For instance, Medibank recorded a pre-tax profit of $785 million in 2024, representing a 45% return on equity. Despite these significant profits, the insurer proceeded with premium increases, raising questions about the justification for such hikes.
Health Minister Mark Butler has expressed concern over these practices, cautioning insurers against employing underhanded tactics to increase premiums. He emphasised the need for insurers to consider the financial pressures faced by consumers and to ensure that premium increases are justified and transparent.
For healthcare professionals, particularly those in the allied health sector, these developments are significant. Rising premiums may lead to patients reconsidering or downgrading their health insurance coverage, potentially impacting their ability to access necessary healthcare services. Practitioners should be aware of these trends and prepared to discuss alternative options with patients who may be affected by increased costs.
As the debate over private health insurance premiums continues, it is crucial for both consumers and healthcare providers to stay informed about industry practices and to advocate for reforms that prioritise patient care and affordability over corporate profits.
