Kathmandu. Australia’s federal government has approved an average increase of 4.41 per cent in private health insurance premiums effective from April 1.
A media release from the Ministry of Health, Ageing and Disability said the approved increase for 2026 was slightly higher than last year’s 3.73% increase. “This reflects the rising cost of providing medical and hospital services,” the statement said, adding that it had increased by 5 percent in the previous fiscal year. ’
The Australian government will provide Australian insurers with an estimated 7.9 billion Australian dollars ($5.3 billion) in private health insurance rebates this year when the government reintroduces the index of the discount limit in 2024, the statement said.
In the 12 months to September 30, 2025, insurance companies made more than AU$26.7 billion in benefits on health, medical and additional benefits. This year’s premium increase also reflects rising wage bills and the viability of private hospitals. As a result, the hospital benefit ratio increased from 85.9 percent in September 2025 to 82.9 percent. June has grown from a low of 83 per cent in 2022-23. It is expected to rise further to 87 per cent for the 12 months to April 1.
Australia’s Health Minister Mark Butler said: “The government understands the pressures the government is putting on Australians to make changes to health insurance premiums and that consumers should be at the forefront of making decisions about private health insurance premiums. –Asian Insurance Review
