5 Feb, 2025: Australians are set to be handed another cost of living blow on 1 April as health insurance premiums set for one of the biggest rises in recent years, with new modelling suggesting some households could be facing increases of nearly $370.
Data from financial marketplace and advice company Compare Club highlights the impact a proposed 6% rise in health insurance premiums, sought by Health insurers, could have on our bank accounts. This would mean the average premium for retired families could rise by $369 in 2025, making them the hardest hit. Older families aged 55-64 are also projected to face a $359 increase, followed closely by retired couples with a $358 increase.
Compare Club’s modelling highlights that Australians with health insurance could face one of the largest hikes in years. A projected 2025 increase of 6% follows previous increases of 3.03% in April 2024, 2.9% in 2023, and 2.7% in 2022. This makes 2025’s predicted hike the highest in recent history.
With the cost of living already straining household budgets, this substantial increase adds further pressure. Health insurance customers are encouraged to review their current policies and compare alternatives to ensure they’re getting the best value for their money.
In particular:
Couples over 65 could see an increase in premiums of more than $358 per year
Young families could see an increase of up to $248 per year
Retired couples could see their average premium rise to over $5,967 a year
“We know health funds have asked the government for an increase of around 6% in premiums. This is a worst-case scenario, but it’s one Australians should be prepared for,” said Kate Browne, Head of Research and Media at Compare Club. “Even if the funds are negotiated down by the health minister, we’re still expecting a significantly bigger premium hike than last year.”
“In the midst of a cost-of-living crisis, every dollar counts. Retired families, for example, could be hit with a $369 increase in 2025, which is significant. Now more than ever, it’s critical for Australians to remain vigilant and take proactive steps like reviewing their policies and comparing providers. Our data shows families who switch to better-value policies can save an average of $462 a year - savings that can really add up in these challenging times”.
But policyholders can be proactive - Compare Club’s data shows that families have saved an average of $462 on their health insurance when they’ve switched to a better value policy**.
Numbers calculated based on average premiums sold by Compare Club over the past 5 years
Policy type
| Average difference if there is a 6% rise | Potential annual average cost of premium from April 2025 | Potential Average Cost savings for switching health insurer |
Singles | $153 | $2,701 | $137.89 |
Couples | $335 | $5,923 | $361.08 |
Families | $296 | $5,233 | $222.50 |
Single parent families | $224 | $3,961 | $258.83 |
The Federal Government is likely to announce any increases in the coming months. For more information or assistance reviewing your health insurance options, visit Compare Club’s website: https://compareclub.com.au/
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NOTES FOR EDITORS
*Compare Club can provide models of potential healthcare premium increases upon request
Media enquiries:
Alice Cooke
Media + Capital Partners
0484 747 472
alice.cooke@mcpartners.com.au
About Compare Club
Compare Club is one of Australia’s fastest-growing personal finance marketplaces, it helps Australians save money by navigating complicated and important financial decisions. Compare Club’s panel of experts offer bespoke advice to over 3.6 Million members making 1 Million product enquiries per year on key financial decisions, including health insurance, electricity & gas bills, personal, car and home loans. Compare Club is locally owned and employs 200 passionate staff across Sydney, Melbourne, Brisbane and another 50 staff in Indonesia and the Philippines.
