Health Insurance Premiums Increase April 2026: What You Need to Know
The Australian Government has approved an average premium increase of 4.41% for private health insurance, effective 1 April 2026. This means most Australians with private health cover will see their premiums go up, with individual fund increases ranging from 1.98% to 5.98%.
While the 4.41% average is lower than some recent years, it still adds hundreds of dollars per year to the cost of cover for singles and families. Below, we break down exactly how much more you can expect to pay, which funds are increasing the most, and what you can do before 1 April to minimise the impact.
At a Glance
| Average approved increase | 4.41% |
| Effective date | 1 April 2026 |
| Range of increases | 1.98% to 5.98% |
| Number of funds affected | All registered private health insurers |
| Estimated extra cost (single) | $75 - $130 per year |
| Estimated extra cost (family) | $180 - $340 per year |
How Much More Will You Pay?
The dollar impact depends on your current premium. Here is what a 4.41% average increase looks like for typical policy prices.
Singles
| Current monthly premium | Monthly increase (4.41%) | New monthly premium | Extra per year |
|---|---|---|---|
| $120 | $5.29 | $125.29 | $63.50 |
| $160 | $7.06 | $167.06 | $84.67 |
| $200 | $8.82 | $208.82 | $105.84 |
| $250 | $11.03 | $261.03 | $132.30 |
Families
| Current monthly premium | Monthly increase (4.41%) | New monthly premium | Extra per year |
|---|---|---|---|
| $350 | $15.44 | $365.44 | $185.22 |
| $450 | $19.85 | $469.85 | $238.14 |
| $550 | $24.26 | $574.26 | $291.06 |
| $650 | $28.67 | $678.67 | $343.98 |
These figures use the 4.41% average. Your fund may be higher or lower. Check your fund's specific increase rate, or compare policies to find a better deal before 1 April.
Which Funds Are Increasing the Most?
Not all funds are increasing by the same amount. The approved increases vary significantly across fund categories.
| Fund category | Typical increase range | Notes |
|---|---|---|
| Large for-profit funds | 3.5% - 5.5% | Higher claims costs and shareholder expectations |
| Large not-for-profit funds | 3.0% - 4.5% | Generally lower increases due to member-focused model |
| Mid-size regional funds | 2.5% - 4.8% | Varies widely based on membership demographics |
| Restricted / corporate funds | 1.98% - 4.0% | Often the lowest increases, limited membership eligibility |
| Budget / online-only funds | 3.0% - 5.98% | Wide range; some budget products seeing higher-than-average rises |
If your fund is at the higher end, it may be worth comparing alternatives. Not-for-profit and restricted funds tend to deliver lower average increases over time, though eligibility may be limited.
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Why Do Premiums Keep Going Up?
Premium increases are driven by a combination of factors that push up the total cost of providing health cover each year.
- Rising healthcare costs: The cost of hospital procedures, medical devices, and prostheses continues to climb. Hospitals charge more each year, and these costs are passed through to insurers and ultimately to policyholders.
- Ageing population: As the insured population ages, claims increase. Older members use more hospital services and have higher claims costs, which affects the community-rated premium pool.
- Higher utilisation: Australians are using their health cover more frequently, including elective surgeries, mental health services, and allied health treatments. Increased utilisation drives up total claims.
- Medical inflation: The cost of healthcare in Australia grows faster than general CPI inflation. Medical specialist fees, diagnostic imaging costs, and pharmaceutical expenses all contribute to above-CPI premium growth.
- Gap payments and out-of-pocket costs: As gap payments between the Medicare Benefits Schedule fee and what specialists charge widen, insurers face pressure to cover larger portions to keep policies competitive, adding to premium growth.
Historical Premium Increases
For context, here is how the 2026 increase compares to recent years.
| Year (effective 1 April) | Average increase |
|---|---|
| 2026 | 4.41% |
| 2025 | 3.73% |
| 2024 | 3.03% |
| 2023 | 2.72% |
| 2022 | 2.70% |
| 2021 | 2.74% |
| 2020 | 2.92% |
The 2026 increase of 4.41% is the highest since before 2020, reflecting the cumulative effect of post-pandemic healthcare cost pressures, increased hospital activity, and rising specialist fees.
What You Can Do Before 1 April
You do not have to simply accept the increase. Here are six strategies to reduce the impact or lower your premium.
Different funds are increasing by different amounts. A fund with a 2% increase saves you significantly more than one at 5.98%. Use a comparison tool to see real premiums side by side. You can switch funds at any time without losing cover.
You may be paying for hospital inclusions you are unlikely to use. Pregnancy cover if you are past that stage, or joint replacements if you are in your 30s, add to your premium. Downgrading to a policy that matches your actual needs can save hundreds per year.
Raising your hospital excess from $250 to $500 or $750 lowers your premium. For singles, the maximum excess is $750. For couples and families, it is $1,500. A higher excess means more out-of-pocket if you are admitted to hospital, but your monthly premium drops.
Most funds offer a discount of 4% to 8% if you pay your premium annually or quarterly rather than monthly. If you can afford the lump sum, this effectively offsets the entire premium increase.
If your income has changed, you may be entitled to a higher government rebate than you are currently receiving. The rebate can reduce your premium by up to 32.8% depending on your age and income. Make sure your fund has your correct income tier on file.
Extras cover for dental, optical, and physiotherapy varies hugely in price. If you are not claiming close to your annual limits, a lower extras tier or dropping extras entirely could save $30 to $60 per month. Do the maths on what you actually claim versus what you pay.
Who Should Consider Switching?
Switching health funds in Australia is straightforward thanks to portability rules. If you switch to an equivalent or lower level of hospital cover, you do not need to re-serve any waiting periods. Your continuity of cover is preserved.
You should consider switching if:
- Your fund's increase is significantly above the 4.41% average
- You have not reviewed your policy in more than two years
- You are paying for cover you do not use (e.g., pregnancy, rehabilitation)
- You could get equivalent cover from a not-for-profit or restricted fund at a lower price
- Your circumstances have changed (e.g., children left home, income changed)
Portability means you can switch on any day of the year. There is no lock-in period with health insurance in Australia. Your new fund must credit any waiting periods you have already served with your previous fund.
Don't Cancel Without Thinking It Through
Rising premiums make it tempting to cancel private health insurance altogether. Before you do, consider the financial penalties that may apply.
If you earn over $97,000 as a single (or $194,000 as a family) and do not hold hospital cover, you will pay the Medicare Levy Surcharge of 1% to 1.5% of your taxable income. For a single person earning $120,000, the MLS would cost $1,200 per year, which is likely more than the premium increase.
If you cancel your hospital cover and rejoin later, you may face a Lifetime Health Cover loading of 2% for every year you are aged over 30 without cover. For example, if you cancel at age 40 and rejoin at 45, you could face a 10% loading on top of your premium for 10 years. This loading can make cover significantly more expensive in the long term.
In most cases, switching to a cheaper fund or downgrading your cover is a better option than cancelling entirely. The MLS and LHC loading penalties can cost more over time than the premium increase itself.
Key Dates
| Date | Event |
|---|---|
| Now - 31 March 2026 | Compare policies and switch before the increase takes effect |
| 1 April 2026 | New premiums take effect across all funds |
| 1 April 2026 | Updated government rebate percentages also take effect |
| 30 June 2026 | End of financial year - check your rebate entitlement and MLS position |
Frequently Asked Questions
Compare Health Insurance Before 1 April
See real premiums from 34 health funds with your government rebate applied. Find equivalent cover at a lower price before the increase hits.
Compare Health InsuranceGeneral information only. This is not personal financial advice. Premium increase figures are based on rates approved by the Australian Government for the 2026 premium round. Individual fund and policy increases may vary. Compare policies using current pricing before making any changes to your cover.