Eight million Australians are finding different ways to limit the hit from the next private health insurance premium increase, due to take effect on April 1, with Sky News reporting that policyholders are cutting costs by trimming cover, switching funds, and changing how they pay.
Finder research shows 53% of health fund members have already taken some form of action. Among the most common moves, 21% have downgraded to basic policies and 16% have changed insurers. Around one in eight have paid for a full year upfront to lock in current rates before the 4.4% average increase begins.
Others are changing the mix of cover they hold. About 11% have dropped extras altogether, while 8% have kept extras but removed hospital cover. Another 8% are using a couples policy instead of two separate plans, and 3% have split hospital and extras cover between different providers.
The findings suggest these cost-saving moves are more common in some parts of the country than others. Victorians were the most likely to make changes, at 66%, while Queenslanders were the least likely, at 43%.
Taylor Blackburn, personal finance and insurance specialist at Finder, said the lowest-paying members are usually those who keep reviewing their policies rather than sticking with the same cover by default.
“The Australians paying the least are the ones who treat their policy like any other subscription—they review it, renegotiate it and aren’t afraid to switch. It’s one of the bills where loyalty can quietly cost you hundreds of dollars a year,” Blackburn said, adding that even a short review each year can make a difference.
He also pointed to competition between insurers as another reason switching can help reduce costs.
“Health insurers compete hardest for new customers, which means the best deals rarely go to people who stay put. If you haven’t reviewed your policy recently, you could be leaving money on the table,” he said.
The push to save comes as some policyholders face increases above the headline rate. CHOICE estimates some premiums could rise by as much as 25%, depending on the policy, while gold-level cover across the five largest insurers is expected to increase by an average of 13.3%.
