Health Insurance Premium Increase April 2026: How Much More Will You Pay?

The federal government approved an average industry-wide premium increase of 3.73% for private health insurance policies from 1 April 2026. This follows increases of 3.03% in April 2024 and 3.53% in April 2025, continuing the post-pandemic trend of above-inflation premium growth.

The 3.73% average masks significant variation between funds. Some funds applied increases well below average (1.8-2.5%) while others applied increases of 5-7% on certain product tiers. Not-for-profit funds — including HCF, Teachers Health, and Police Health — historically apply lower increases than the for-profit majors.

To find your actual increase, check your fund's communication from March 2026 — they are legally required to notify you at least 30 days before implementing a premium change. You should have received a letter, email, or app notification specifying your new premium.

A 3.73% increase on typical premiums translates to:

• Single basic hospital policy ($1,440/year): +$54 per year ($4.50 per month)
• Single gold hospital + comprehensive extras ($3,600/year): +$134 per year ($11.20 per month)
• Family gold hospital + extras ($7,200/year): +$268 per year ($22.40 per month)

These numbers compound year on year. A policy that cost $5,000 in 2020 is now approximately $6,200 after successive annual increases. Over a decade of 3.5% average annual growth, your premium effectively doubles.

Use our Health Insurance Rebate Calculator to check how much of your premium is offset by the government rebate — which also adjusts annually in line with premium movements.

You have several options when your premium increases:

1. Do nothing: Your policy continues with the new premium. This is fine if you're happy with your cover and the price is still reasonable for your situation.

2. Downgrade your cover: Move from gold to silver, silver to bronze, or reduce extras coverage. Downgrading typically requires a new waiting period only for the benefits you're adding — existing benefits at the lower tier are immediately accessible. Check for exclusions carefully before downgrading.

3. Switch funds: You can switch funds at any time without losing your waiting period history — the new fund must recognise your waiting period served with the previous fund for equivalent benefits. Comparison sites (comparethemarket.com.au, iselect.com.au) can show you equivalent products at lower premiums.

4. Cancel: If you're below 31, cancelling has no LHC loading consequence. Above 31, every year without hospital cover adds 2% to future premiums. See our LHC Calculator to understand the long-term cost of cancelling.

The Australian Government Rebate on private health insurance is adjusted each year on 1 April. For 2025-26, the rebate tiers are:

• Under 65, income below $93,000 (single): 24.608% rebate
• Age 65-69: 28.710% rebate
• Age 70+: 32.812% rebate
• Income $93,001-$108,000: Rebate reduces (Tier 1)
• Income $108,001-$144,000: Further reduction (Tier 2)
• Income over $144,000: No rebate (Tier 3)

Most people claim the rebate as a premium reduction — the fund bills you the net amount after the rebate, with the government paying the rebate directly to the fund. If you claimed the wrong rebate tier (e.g., if your income changed significantly), there will be a reconciliation in your tax return. See our Health Insurance Rebate Tiers guide for the full breakdown.

Why does private health insurance go up every year?
Premium increases reflect rising healthcare costs — hospital costs, medical inflation, and higher utilisation. Australians are using more healthcare services, and the cost per service is increasing. The government approves increases annually after reviewing each fund's financial application.

Can I lock in my old premium before the increase?
Some funds allow you to prepay your annual premium before the increase date and lock in the old rate for an additional year. This strategy makes sense if you can afford the upfront payment. Check with your fund before 31 March each year.

Does the premium increase affect my extras cover separately?
Yes — hospital and extras cover are priced and increased separately, though they're often bundled. Your fund's notification should specify the change to each component.

I didn't get a notice about the increase — what should I do?
Check your spam folder, update your contact details with your fund, and log into your fund's member portal to see your new premium. If you think you were charged incorrectly, contact your fund directly.