New research from Finder reveals a concerning trend: a growing number of Australians are planning to cancel their private health insurance policies as they struggle with rising living costs and impending premium increases.
A survey of 1,012 Australians uncovered that 16% are not planning to renew their private health insurance this year. Furthermore, 22% of respondents currently lack private health insurance.
Younger Australians appear to be leading this trend. Approximately 25% of Generation Z and 20% of Generation Y members are considering cancelling their health insurance by the end of 2025.
Currently, the average cost of mid-range private health insurance for hospital cover is around $154 per month for a single individual, totaling approximately $1,848 annually. This financial burden is set to increase, with premiums scheduled to rise by 3.73% by April 1st. This increase will push the average monthly cost to $160, which amounts to an additional $72 per year.
“Australians are abandoning their health insurance in large numbers as they grapple with the mounting pressures of rising living costs,” stated Tim Bennett, a health insurance expert at Finder.
Bennett offered some alternatives to outright cancellation. “Instead of cancelling, consider reducing coverage, modifying your extras, or comparing plans for more suitable cover. Decreasing your level of cover or increasing your excess are just a couple of ways to make cover more affordable.
Bennett also offered another potential solution. “If you can afford to do so, paying your premium for the upcoming 12 months is a great way to avoid the increase and get some money back in your pocket.”
He also cautioned about the potential consequences of dropping health insurance. “Dropping private health insurance may save money in the short term, but it risks significant out-of-pocket costs, longer waiting times, and limited access to essential services.”
