Private Health Insurance Premiums

25 Feb 2011Media Releases

Private Health Funds are forecast to inject an additional $1 billion into Australia’s health care system in 2010-11 bringing total expenditure on private health treatments to more than $12 billion.

Today’s premium adjustment by Health Minister Nicola Roxon acknowledges the increasing cost of health care and identifies an expected increase of 7.94% in expenditure by Funds on behalf of their 11.4 million members in the coming 12 months.

The average premium increase of 5.78% is necessary to ensure Private Health Funds can continue to pay for the provision of health care services and meet statutory prudential requirements.

While the Industry is aware that a premium change is never welcomed, most Australians understand that if benefits paid out on their behalf increase by 10%, there will need to be an increase in premiums, too.

The benefits paid by Private Health Funds during 2008-09 totalled $11 billion, which was an increase of 10% on the previous 12 months.

During 2008-09 the benefits paid on behalf of members included:

  • $8.2 billion for hospital treatment  – an increase of 10.5% on the previous year;
  • General Treatment Benefits totalled $2.8 billion – an increase 8.7% on the previous year;
  • Payment for prostheses totalled $1.2billion – up 12.5%; and
  • Payments for medical specialists totalled $1.3 billion – up 9.7% on the previous year.

Source: PHIAC Operations of the Private Health Insurers Annual Report 2008-09.


Media contact:  Jen Eddy 02 62021000/0439240755