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Millions of Australians are being urged to comb through their private health insurance policies as premiums are set to jump again, with experts warning families could be paying thousands more than they need to.
Private health insurance customers are preparing for another hit to their budgets, with premiums set to rise by 4.41 per cent from April 1, up from last year's 3.73 per cent increase.
It's the largest single-year rise in premiums since 2017, when it rose by 4.84 per cent.
Health Minister Mark Butler said the increase reflects rising costs across the health sector, including higher wages and growing expenses for medical and hospital services.
Canstar.com.au's data insights director, Sally Tindall, said there are a couple of ways Aussies can save on their health insurance despite the increase.
'You can pre-pay the next year's premiums at today's prices. Many insurers will let you pre-pay the next 12 months of hospital insurance premiums at current prices before they increase,' she said.
She also urged customers to reassess their policies to make sure they are not paying for unnecessary cover.
You might find you're paying for a level of cover you no longer need, just be aware of the risks that come with downgrading your cover.
Health Minister Mark Butler (pictured) is cracking down on health insurers 'product phoenixing' by introducing a new Bill
Ms Tindall said switching insurers can also deliver major savings, provided the level of cover remains the same.
'If someone switches from the average-priced gold hospital insurance policy to the lowest-priced option, they could potentially save $1,387 in a year.
The approved 4.41 per cent rise represents an industry average rather than a cap, meaning some insurers have been allowed to lift premiums by more than others.
'For example, AIA Health Insurance has the highest government-approved price increase at an average of 5.98 per cent, while the lowest will be 1.98 per cent from GMHBA Limited,' she said.
Meanwhile, the federal government moving to outlaw what it says is a sneaky tactic costing families thousands.
Butler will introduce laws to stamp out so-called 'product phoenixing' - where insurers quietly shut down policies only to relaunch near-identical cover at a higher price or with reduced benefits.
The practice leaves households paying more for less protection, often without realising their coverage has been reduced.
Private Healthcare Australia chief executive Rachel David said health funds were grappling with the rising cost of providing care to an ageing population with more complex needs.
'More people are using their health insurance for high-cost hospital care such as joint replacements and cancer treatment, and the cost of delivering care continues to rise. This premium increase reflects those realities,' Dr David said.
'If health funds could keep premiums the same without jeopardising their ability to pay claims, they would. The industry is acutely aware of how tough many Australians are doing it right now.'
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