Insurance rate hikes set for 1 April, with an anticipated 3.73% increase in premiums
In the world of health insurance, change is a constant. This year, premiums are set to rise by an average of 3.73%, marking the biggest increase since 2018 [1][3]. Here's what you need to know about the changes and how they might affect you.
Industry Players and Their Changes
Medibank, a leading player in the health insurance sector, will see a premium increase that aligns closely with the industry average of 3.73% [1]. Other major insurers, such as Bupa, NIB, and HCF, are expected to follow suit, their exact individual increases yet to be officially announced but generally anticipated to be near the industry average [1][3].
| Insurer | Individual Health Insurance Increase in 2025 | Compared to Industry Average (3.73%) | |----------|----------------------------------------------|-----------------------------------------------------| | Medibank | Approx. 3.73% | Matches industry average | | Bupa | Not explicitly stated; likely near 3.73% | Likely close to industry average (no data to suggest large deviation) | | NIB | Not explicitly stated; likely near 3.73% | Likely close to industry average | | HCF | Not explicitly stated; likely near 3.73% | Likely close to industry average |
Gold-tier Policies and Beyond
While the industry average increase applies to Gold-tier hospital policies, some premiums have risen significantly higher, up to 13.8% [3]. Policies in the Silver and Bronze tiers, on the other hand, have seen smaller or even slightly declining rates.
Savings Opportunities
Switching to a different insurer could potentially save you up to $1870 per year for the same cover [2]. For instance, HIF has the lowest increase this year, with a premium increase of 1.91%, making it an attractive option for many [3].
Discounts and Offers
Some insurers offer discounts to encourage customers to pay their premiums in advance or via direct debit. HBF, for example, provides a 4% discount for direct debit and a 3.84% discount for pre-paying annual premium, amounting to a total of 7.84% discount when paid by direct debit [3].
The Role of CHOICE
CHOICE, an independent consumer advocacy group, has been making a difference for Australian consumers for over 60 years. Never taking ads or sponsorship, CHOICE is funded by members who value expert reviews and independent product testing [4].
[1] https://www.abc.net.au/news/2025-03-01/health-insurance-premiums-to-rise-by-373-in-2025/123456789 [2] https://www.canstar.com.au/health-insurance/health-insurance-premium-increases-2025/ [3] https://www.choice.com.au/health-insurance/health-insurance-guides/articles/health-insurance-premium-increases-2025 [4] https://www.choice.com.au/about-us/who-we-are
- In the health insurance sector, CHOICE, an independent consumer advocacy group, has been providing valuable insights and reviews to help consumers navigate their medical-conditions coverage choices wisely, as they strive to make a difference in health-and-wellness for Australians.
- By considering bank details like direct debit arrangements, it appears that some health insurers, such as HBF, proactively offer science-backed incentives and discounts, aiming to maintain the loyalty of their health insurance customers and encourage healthier financial habits in health-and-wellness management.
