Premiums predicted to rise by $114 a year 

Hospital Cover premiums could be set to rise, due to a ‘health tax’ introduced in NSW this week.  

The NSW Government has introduced laws to force private health insurers to pay the correct rate for single rooms in public hospitals. The government says some private health insurers have not been paying the correct rate, with the four largest insurers (HCF, Bupa, Medibank and nib) among those underpaying. Around one in five public hospital beds is occupied by someone with private health insurance.  

Industry body Private Healthcare Australia says that if the laws are passed, insurers will be forced to charge higher premiums, with the cost of Silver Hospital Cover predicted to rise by as much as $114 per year. 

“Sixty-five per cent of people with private health insurance have a taxable income of $90,000 or less,” says Private Healthcare Australia CEO Dr Rachel David. “They cannot take another financial hit during a cost-of-living crisis. No other state in NSW taxes health insurance like this. This will make NSW the most expensive state in Australia to hold health cover.” 

Increasing numbers of Australians are already downgrading their health insurance due to cost-of-living pressures, the organisation notes. While Australian Prudential Regulation Authority (APRA) data shows membership and coverage has not changed significantly in 2024 compared to 2023, premium revenue has dropped, indicating many Australians are reducing their level of cover to save money.  

View the APRA health insurance statistics and read the Sydney Morning Herald ‘health tax’ story. 

Trudie McConnochie

Writer and Researcher

Knowledge is power – that’s the guiding principle behind everything Trudie writes, and it’s a philosophy she brings to her work at healthslips.com.au. By breaking down complex information into easy-to-understand blogs and stories, she aims to empower Australians to make the best choices and an informed decision around private health insurance.

Trudie understands firsthand some of the complexity of private health insurance having moved to Australia from New Zealand and having to navigate a vastly different public healthcare system and health insurance structure.

Trudie holds a Bachelor of Communication Studies (journalism major) from the Auckland University of Technology.

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