Buy Health InsuranceIndependent guide · not a health fund
The guide · receipt 05 of 06
Premium changes each April
Health insurers can raise premiums only with the Health Minister’s approval. Most changes go through a premium round held once a year and take effect on 1 April. Your insurer must tell you in advance, in writing, what your own policy will cost, with enough notice for you to look at other policies.
The premium round, month by month
The Department of Health calls it the annual premium round: once a year, at the same time each year, insurers apply to the Minister for Health to increase premiums. Here is how the round for 1 April 2027 is set to run.
- 11 Nov 2026
Applications close
Insurers’ applications for the 2027 round are due by 3pm AEST. The 2026 round closed on 12 November 2025.
- Then
The department assesses them
Each application is checked to make sure the requested premiums are justified, taking into account advice from the Australian Prudential Regulation Authority (APRA) on any potential adverse prudential outcome for each insurer.
- Dec–31 Jan
The Minister decides
By law, the Minister must approve an application unless satisfied that it is not in the public interest. The indicative timing for announcing the outcome is December to 31 January, subject to the Minister’s consideration.
- Late Jan
The rebate is adjusted
The Private Health Insurance Rebate is adjusted each year after the late January release of the December quarter Consumer Price Index. How the rebate works is set out on privatehealth.gov.au.
- Feb–Mar
Your fund writes to you
With the premium decision and the rebate both known, insurers can give members definitive figures, usually not until February or March.
- 1 Apr 2027
New premiums start
Approved premium changes take effect on 1 April each year.
A change at any other time needs a separate out-of-round application.
What your fund must tell you
Your insurer must let you know in advance about any change to your premiums or cover, and give you reasonable notice so you can find a different policy if you wish. The Department of Health asks insurers to give that notice with enough time for you to review your cover and consider a different product.
The notice gives the exact change for your own policy, in writing. It looks something like this.
Example only · invented figures
- Your policy, monthly premium
- Until 31 March$200.00
- From 1 April (up 4.00%)$208.00
- Extra each month$8.00
- Extra over a year$96.00
$200.00 × 4.00% = $8.00 a month; $8.00 × 12 = $96.00.
The industry average, and why yours may differ
Each year the department publishes the average premium change for each insurer and for the industry. The industry figure is weighted by the number of people covered in each product group, and it is not what every member will see: some policies rise by more than the average and some by less.
| From 1 April | Industry average |
|---|---|
| 2022 | 2.70% |
| 2023 | 2.90% |
| 2024 | 3.03% |
| 2025 | 3.73% |
| 2026 | 4.41% |
Source: Average annual price changes in private health insurance premiums, Department of Health, Disability and Ageing, as at October 2026.
The table goes back to 1997 on the department’s page, insurer by insurer. An insurer’s own average is calculated from its forecast premium income over the following 12 months, a revenue measure the department considers less distorted by unusual products than a simple average.
Choices when the letter arrives
None of these is right for everyone, and the official pages describe them rather than recommend them.
Pay ahead, with rate protection
If you can pay 12 months in advance, some insurers offer rate protection: you pay the whole period at the rate on the day you pay, and a rise doesn’t affect you until that period ends. Without it, the insurer asks you to pay the balance at the new rate or shortens the period your payment covers.
Look for discounts
Insurers may offer discounts for paying at least three months ahead, by payroll deduction or direct debit, for dealing with them electronically, or through a workplace or group policy.
Change the shape of the cover
A higher excess or co-payment, or excluding or restricting services you don’t expect to need, lowers the premium in exchange for paying more if you do need them. An exclusion means no benefits at all for that service as a private patient.
Move to another policy
The notice period exists so you can compare. The comparing receipt covers the search, and the switching receipt what carries over.
If paying becomes hard
Falling more than two months behind means you are no longer covered. The Department of Health suggests talking to your insurer before you fall behind. The Ombudsman’s site suggests asking about a payment plan, and some insurers grant suspensions for financial hardship.