Health insurers will again raise their premiums from April 1, delivering an average increase of 2.7 per cent.
However, some major funds have put the annual premium rise on hold to pay customers back for inflated profits during COVID-19.
HBF was the only one of the five major funds to raise premiums from Friday, jumping well above the national average, up 3.62 per cent — an increase of around $4.47 per fortnight for the average customer.
The other four will delay the annual increase until later in the year.
On September 1, NIB will go up 2.66 per cent, while HCF will climb 2.72 per cent from November 1, 2022.
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From October 1, Medibank will increase 3.10 per cent, while Bupa will increase the most of the Big Five, up 3.18 per cent.
A spokesperson for HBF explained the decision to raise premiums ahead of the others was based on the company seeing a smaller impact on claims during the pandemic, and having paid back some of the difference directly to customers.
“In WA, where over 80 per cent of our members live, COVID-19 had less impact during 2021, with few lockdowns and elective surgery impacts,” the HBF spokesperson said.
“This translated into less impact on claims paid to our members, meaning we have not deferred our 2022 premium increase.”
Some funds, including HBF, also paid customers direct sums as a way of returning bumper profits incurred during COVID.
“Over the last two years with the COVID pandemic, a lot of people weren’t allowed to access elective surgery because they were trying to keep hospitals free for people with COVID-19,” consumer group Choice’s category manager for money and travel, Jodi Bird, explained.
“So what happened was the health funds called in all their premiums, but they didn’t have to pay out any claims for people getting things like elective surgery, or even going to the dentist, because a lot of us just weren’t able to go because of the lockdown laws.”
Insurers paid out $500 million less in hospital and extras benefits in 2019-20 compared to the previous year, according to the ACCC.
Of all health funds, the smallest increase this year will be Health Care Insurance with 1.09 per cent, while CBHS Corporate will have the largest average increase for the second year in a row with a 5.33 per cent jump.
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Over the past decade, health insurance premiums have increased 54 per cent, well above the inflation measure, the Consumer Pricxjmtzywe index (CPI), which has increased 20 per cent.
HBF chief executive officer John Van Der Wielen said annual premium increases run ahead of broader inflation due to a host of factors including “Australia’s ageing population, chronic illnesses, more complex medical procedures, and the cost of medical devices”.
Choice advises those with health insurance to be aware of the annual premium increases and to find out what it means for them by comparing funds.
