As private health insurance premiums are set to rise by 3.73% on April 1st—the largest increase in seven years—16% of Australians are planning to drop their policies, according to a recent survey.
The study, conducted by Finder and based on responses from 1,012 participants, reveals that this represents approximately 3.3 million people. Despite this, 41% of Australians stated they intend to stick with their current insurer, while 16% are open to switching providers if they can find a better deal.
The survey also highlighted that 22% of Australians—around 4.6 million people—currently do not have private health insurance.
Tim Bennett, a health insurance expert at Finder, attributed the trend to escalating living costs and encouraged Australians to consider adjusting their coverage rather than canceling it altogether. He suggested options such as reducing coverage, increasing excess payments, or prepaying premiums to help mitigate the impact of premium increases.
The average cost of mid-range hospital cover is expected to rise from A$154 to A$160 per month, adding an extra A$72 annually.
Young Australians, particularly those in Generation Z and Generation Y, are more likely to cancel their coverage. About 25% of Gen Z and 20% of Gen Y members plan to drop their insurance by the end of the year.
While Bennett acknowledged the short-term appeal of canceling coverage, he cautioned that it could lead to higher out-of-pocket expenses and longer wait times for medical services. He urged policyholders to review their health insurance options now to find more affordable alternatives that still meet their needs.
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