$72 Price Hike Could Push Australians to Drop Health Insurance

Millions of Aussies might be dropping their private health insurance this year as premiums skyrocket, with a new price hike set to hit on April 1. According to new research, premiums are going up by 3.73%, the biggest increase in seven years, and many Australians are feeling the pinch.

Comparison site Finder predicts a mass exodus of policyholders, with a survey of 1012 people showing that 16%—which works out to about 3.3 million Australians—are planning to ditch their insurance in 2025 in search of a better deal. Only 41% of respondents said they’ll stick with their current insurer, and nearly a quarter said they don’t have private health insurance at all.

The upcoming hike means the average health policy for a single person will jump by $72 a year to around $1848. Finder's health insurance expert, Tim Bennett, said, “Australians are abandoning their health insurance in large numbers as they grapple with the mounting pressures of rising living costs.”

Instead of cancelling outright, Bennett suggested looking into options like reducing coverage, modifying extras, or comparing plans to find something more affordable.

Young Australians, particularly those aged 18 to 35 (Gen Z and Millennials), are most likely to drop their coverage. With the price rise just around the corner, Bennett recommends shopping around for other options to avoid getting stung by the higher premiums.

“Dropping private health insurance may save money in the short term, but it risks significant out-of-pocket costs, longer waiting times, and limited access to essential services,” he warned.

While the average increase is 3.73%, not all insurers are raising prices by the same amount.

Some are hitting customers with much higher hikes, while others have kept increases lower—or aren’t raising prices at all. It’s a good idea to check how much your insurer is planning to bump up premiums so you can make an informed choice.

Thinking about switching or adjusting your plan? Now’s the time to do it.