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 give back to our members and improve affordability. We are very proud to have been one of the first health funds in Australia to provide meaningful financial relief – well ahead of others in the market.

In fact, we were the only fund in Australia to provide our members with a discount on both hospital and extras premiums when the pandemic first impacted health services in 2020. We also delayed our annual rate rise twice, in 2020 and 2021.

These measures have seen us give back over $11M to our members, which equates to an average per policy of $243.

We also continue to provide options and relief to our members who are facing financial hardship or unemployment.

A look at why premiums increase

As a not-for-profit fund, we will always keep premium increases to the absolute minimum necessary to ensure we can continue delivering you high quality cover that remains accessible and provides great value, even as healthcare costs continue to rise.

There are many factors that contribute to increases in the cost of healthcare. Here’s a look at some of them:

Inflated cost of medical devices

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

Private Health Insurers are required to pay benefits for products listed on the Government Prosthesis List provided to a patient as part of hospital substitute treatment.

Of real concern is the inflated price of many items on the Prosthesis List, with Australians paying between 30 and 100% more for prosthetic devices than other countries, including the UK and New Zealand.

There are more than 11,000 products on the Prosthesis List which includes set prices for artificial joints and pacemakers, but also includes items like staples and surgical sponges that should not be considered prostheses.

The exorbitant costs of all these items, which must be paid for by insurers, is having a direct impact on premiums.

While the Government has committed to reforms that will drive down prices, pressure from multi-national medical device companies has stalled promised reforms being implemented.

At Health Partners, we’re actively lobbying for these important reforms to be delivered to shift value away from medical device manufacturers to consumers, so we can continue to offer you affordable health insurance.

Ageing population and the rise in chronic conditions

Australia’s ageing population and the associated rise in incidence of chronic conditions like cancer and heart disease means more and more people are using the health system. While treatment for these often complex medical conditions can be life-saving, they are costly and can require frequent hospital admissions.

Your premiums, including any necessary increases, ensure that we can continue to pay claims for these vital treatments now, and offer peace of mind that you can access treatment quickly and with your choice of doctor, should you need it in the future.


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 choosing 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. There are some healthcare costs that aren’t covered by Medicare at all and private health insurance policies are designed to cover some or all of those out-of-pocket expenses. It also pays for a range of treatments including COVID-19 hospital-related claims for all members with Hospital cover and importantly 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 will take effect on 1 April 2022.


Private health insurance is based on a system of community rating, developed by the Australian Government. This means that an individual’s premiums can’t be reduced or increased based on their own claiming history or expected future claims. This means you are guaranteed the right to renew your policy and the cost of your premium can’t be increased based on your health or personal circumstances.


Yes. Contact us to take advantage of our pre-payment option which lets you lock in your current premium until 31 July 2023. This offer is available until 28 March 2022.


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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