The Albanese Government has approved an average industry premium rise of 3.03 per cent, which will come into effect from April.

The increase in 2024 is slightly higher than a rise of 2.9 per cent in 2023 and 2.7 per cent in 2022 and 2021.

It’s the largest annual increase to health insurance premiums since the 3.3 per cent approved in 2019.

But the government said it “has ensured Australians get value for money from their private health insurance”.

“The 3.03 per cent increase is well below the annual rise in wages, social security payments and inflation, with wages rising by 4.2 per cent and inflation increasing by 4.1 per cent in 2023, and social security payments increasing in line with inflation,” it said.

Health Minister Mark Butler said that he “wasn’t prepared to just tick and flick the claims of health insurers”.

“I asked insurers to go back and sharpen their pencils and put forward a more reasonable offer for the 15 million Australians with private health insurance,” he said.

“While we know that any increase will be hard to bear during a global cost of living crunch, the Albanese Government has ensured that health insurance premiums will fall relative to Australians’ wages, and Labor’s tax cuts mean all Australian taxpayers will get a tax cut on 1 July, so Australians earn more and keep more of what they earn.”

Butler said the government had given $7.3 billion to policyholders through its private health insurance rebate.

It’s estimated more than $23.5 billion in health and medical benefits were paid out by private insurers in the past year.

“Private health insurers must ensure their members are getting value for money,” Butler said.

– with AAP