The survey encompassing 1,012 Australians showed that 16% of respondents would choose not to renew their private health insurance this year. Additionally, 22% reported that they currently do not have private health insurance. The data identified younger Australians as the most inclined to forgo coverage, with 25% of Generation Z and 20% of Generation Y planning to cancel by the end of 2025.
Currently, the average cost of mid-range private health insurance for hospital cover stands at approximately $154 for an individual, equating to $1,848 annually. However, with premiums slated to increase by 3.73% by April 1, the average monthly amount will rise to $160, adding an extra $72 per year.
Tim Bennett, a health insurance expert at Finder, highlighted the challenges Australians face as living costs continue to climb. Bennett advises individuals to explore options such as reducing coverage, adjusting extras, or comparing plans for potentially better-suited policies. He suggests decreasing cover levels or increasing excess to help manage costs. Additionally, pre-paying premiums for the next year could lock in current rates and prevent future hikes.
While dropping private health insurance might save money short-term, it could lead to increased out-of-pocket expenses, longer wait times, and restricted access to vital health services.
