Daily London
Money.com.au says although premium increases have sat below health inflation since 2021, the gap has been steadily closing.
If health inflation stays near the four per cent mark this year, the 2026 premium hike could fall in line with, or even increase more than health price inflation.
That kind of premium rise would see singles on a combined hospital and extras policy pay an extra $127–$144 a year, while families would face another $191–$216 annually.
These estimates are based on the average combined single policy costing $3,264 a year and the average combined family policy costing $4,908 a year.
Money.com.au’s General Manager of Health Insurance, Chris Whitelaw, says the return of bigger premium increases will be felt by millions.
“What we’re seeing is a reset. Premium increases stayed unusually low for years, and 2026 may be the year they return to a more ‘normal’, but still painful, growth cycle,” Whitelaw said.
“There’s no doubt that a premium increase of around four per cent would be a shock for many policyholders, especially after a few years of softer rises.”
He said many Aussies will downgrade or even cancel their insurance.
He advised Aussies to check their policy and shop around.
Money.com.au said last week health funds submitted their proposed 2026 premium changes to Federal Health Minister Mark Butler for review
The Minister has the final say on the industry-average premium increase, which is announced ahead of the 1 April adjustment each year.
While the government approves a single industry-wide average, individual insurers can apply higher or lower increases, meaning some Australians may see rises well above the headline figure, while others may face smaller adjustments.
