Why your health insurance premium goes up

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As a not-for-profit health fund, we do everything we can to give you the best value and most affordable cover

Affordability matters now more than ever

Throughout the COVID-19 pandemic, we’ve worked hard to improve affordability and give back to our members. Since April 2020, we have returned $9.7 million to members via a range of support measures, which included a 6-month freeze on the 2020 premium increase and a 3-month premium reduction.

Delaying our 2021 premium increase until 1 July, is another way that we’re continuing to support our members this year. This simple initiative saves members an additional $1.56 million and reduces the average premium increase to 2.51% over 12 months, once again below the industry average.

A look at why premiums go up

With health inflation sitting at around 2.6% per annum and well above general inflation (0.9% in Dec 2020), health funds are paying more for healthcare.

To ensure we’re well placed to continue delivering high quality health cover and timely healthcare, a premium increase is necessary. However, as a not-for-profit our focus remains on keeping premium increases to an absolute minimum so that private health cover remains accessible to all.

Here’s a glance at what’s contributing to higher healthcare costs.

Ageing population

An ageing population means more and more people are using the health system, often with complex and costly medical conditions, which puts pressure on the cost of health insurance for everyone.

Percentage of Australians aged over 65

Source: Australian Bureau of Statistics (June 2016) ‘People Aged 65 Years and Over’, Twenty years of population change, accessed on 22 February 2021.

New medical technology

Australians have access to one of the best health systems in the world, however access to new and improved medical technology and treatment options often comes with an expensive price tag.

Advances in medical technology means the cost of medical treatment we pay on behalf of our members has been steadily increasing.


Hear our CEO Byron Gregory discuss the rising cost of Health Care.

Chronic conditions on the rise

Rates of chronic conditions and their associated risk factors are increasing, placing a heavy burden on health care. The prevalence of chronic conditions increases with age, and because chronic conditions are generally long-lasting, their treatment and management are needed for longer periods of an individual’s life.


Premium increases vary from product to product

Health Partners’ premiums are adjusted relative to the costs associated with providing each individual policy. This means the amount your premium increases depends on your policy and may be above or below Health Partners’ average premium increase.

Ways to keep your costs down

Pre-pay and save – by paying your premium in advance you lock in your current rate at the time of payment. Call us for details.

Switch to a higher hospital cover excess – by agreeing to a higher excess you can lower your premium.

Switch to direct debit – you’ll save 3% on your premium.

Discount for young adults

Health Partners is committed to making Hospital cover more affordable, which is why we’ve added a Youth Discount to all hospital products.

New and existing members aged 18-29 are eligible for up to 10% off their Hospital cover. This is automatically applied when calculating premiums.

Find out more about the Youth Discount.


The importance of having Private Health Insurance

Having private health insurance has never been more important. It pays for a range of treatments including COVID-19 hospital-related claims for all members with Hospital cover. It also lets you access treatment on your own terms.


Is your cover still right for you?

Book a personalised cover review with a health insurance specialist now.

View your cover details

You can view the full details of what’s covered under your policy and your premium (including your rebate entitlement if applicable) at any time by logging in to Members Online.

Using it for the first time? Register here.


Frequently asked questions


Premium increases usually take effect on 1 April but to continue to support our members, our premium increase will take effect on 1 July 2021.


The Australian Government Rebate is set to change on 1 April 2021. If you are claiming the rebate as a reduction in premiums this will impact your premiums on 1 April 2021.


Private health insurance is based on a system of community rating. This means that an individual’s premiums can’t be reduced or increased based on their own claiming history or expected future claims.


Yes. Your premiums can be locked in up to 31 July 2022.

To lock in your current rate (and the 2020 rebate) please pay by 29 March 2021.

Pre-payments between 30 March 2021 and 28 June 2021 will be calculated on your current premium and the 2021 rebate adjustment (if applicable to you).


Lifetime Health Cover (LHC) is a financial loading that is applied to Hospital cover premiums when people join hospital cover later in life. If you’re paying a LHC loading, your LHC status lets you know the loading percentage applied to your premiums and when that loading is due to be removed.


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