Premium review
Premium changes came into effect on 1 April 2024.
Learn more about why premiums are reviewed annually by health funds below.
Each year health insurers review the cost of healthcare and use this information to adjust premiums. These changes usually take place in April and can only occur once per year.
Why are premiums reviewed annually?
Put simply, the cost of healthcare delivery continues to increase in Australia. Costs are driven by:
Increased cost of health service delivery
An ageing population and people living longer
Increases in chronic conditions
New medical technologies and treatments
Frequently Asked Questions
Health insurance premiums are reviewed because healthcare costs increase year-on-year. Health funds review their cover each year to ensure they remain sustainable and can meet future claim obligations of all members in the fund.
Healthcare costs are driven by a number of factors, including:
- higher costs associated with new medical technologies and treatments
- an ageing population requiring higher levels of care
- rates of chronic health conditions increasing
Health funds are required to justify a premium increase by submitting an application to the Federal Government for approval. All applications to increase premiums are first assessed by the Department of Health and the Australian Prudential Regulation Authority (APRA). The application is then sent to the Minister for Health and Aged Care to consider if the increase is necessary. If a proposed premium increase is found to not be in the public interest, it won’t be approved, and health funds may be asked to review and resubmit their proposals or to keep premiums on hold.
Learn more about private health insurance premium increases.
Premium changes come into effect from your first payment on or after 1 April 2024.
The rebate amount you receive on your private health insurance policy from the Australian Government is determined by income threshold.
While the rebate percentage levels remain unchanged, the income thresholds that determine which tier you fall into will change from 1 July 2024.
Find out more about rebate levels and income thresholds.
All members in the same state/territory pay the same premium for the same policy. Private health insurers cannot discriminate against members based on health status, claims history or age. This is a government requirement called Community Rating. This system is intended to keep health insurance fair and accessible for all Australians. This is in contrast with other insurance industries that use risk rating, such as life insurance or car insurance.
Learn more: Private Health Insurance Community Rating System
You can access a copy of your premium review communication by logging into your member area and viewing your most recent communications. In your member area, you can also update your preferred contact method.
Premiums were last increased on 1 October 2023. This change was deferred from 1 April 2023 which means that members had an extra six months before their new premium came into effect.
We chose to freeze premiums for six months in 2020, 2022 and 2023 as part of our COVID-19 support measures. This was a simple way to enable Frank to return value to members during a challenging time.
Check you’re only paying for what you might need. Ask us for a cover review – we'll go over your cover with you to help you choose a cover suitable for your circumstances. We have a range of policies to suit a variety of budgets and needs.
The past few years have demonstrated quality healthcare is more important than ever. Private health insurance can offer:
- greater choice of provider/doctor/specialist
- protection and peace of mind for members and their families
- cover for services not covered by Medicare such as dental, physiotherapy and glasses under extras policies
- access to extras benefits is a great way for people to proactively look after their health, such as making it easier to have annual dental check-ups.
