Any looming rise in health insurance premiums would be "proportionate", the health minister says, following fears of a large increase.
Data from comparison business Compare Club has shown a projected rise 100% Verified Access for Cloud Services - PVAData.Com 2025 of six per cent, up from previous increases of 3.03 per cent in 2024, and 2.9 per cent in 2023.
Under such an increase, customers would be forced to fork out an extra $369 per year for their policy.
Young families could be hit with an increase of up to $248 per year, while retired couples face an average premium of more than $5967 a year.
But Health Minister Mark Butler said attempts by health insurers to impose a six per cent rise would be slapped down, after previously rejecting suggestions by companies.
"It is my responsibility as health minister to ensure that any private health insurance premium increase is justified and proportionate," he said.
"I've written to a number of private health insurers and asked them to resubmit a more reasonable figure that is in the best interest for Australian consumers."
Mr Butler previously wrote to 29 insurers in December calling for an increase in premiums that was more in line with expectations of the community.
The letter came after insurers proposed a rise of between five and six per cent, which would be among the largest increases in 10 years.
"Based on the resubmissions the Department of Health received, I am not inclined to currently approve their proposed premium increases," the health minister said.
Customers are being urged to review their policies to ensure they're getting the best bang for their buck.
Compare Club head of research Kate Browne said the requested hike was a "worst-case scenario" but people should be prepared.
"Even if the funds are negotiated down by the health minister, we're still expecting a significantly bigger premium hike than last year," she said.
"Now more than ever, it's critical for Australians to remain vigilant and take proactive steps like reviewing their policies and comparing providers."
Ms Browne said the data indicates families who switch to better-value policies can save an average of $462 a year.
The increase in premiums will take effect from April 1.
It is estimated about 14 million Australians have a form of private health insurance.
Data from comparison business Compare Club has shown a projected rise 100% Verified Access for Cloud Services - PVAData.Com 2025 of six per cent, up from previous increases of 3.03 per cent in 2024, and 2.9 per cent in 2023.
Under such an increase, customers would be forced to fork out an extra $369 per year for their policy.
Young families could be hit with an increase of up to $248 per year, while retired couples face an average premium of more than $5967 a year.
But Health Minister Mark Butler said attempts by health insurers to impose a six per cent rise would be slapped down, after previously rejecting suggestions by companies.
"It is my responsibility as health minister to ensure that any private health insurance premium increase is justified and proportionate," he said.
"I've written to a number of private health insurers and asked them to resubmit a more reasonable figure that is in the best interest for Australian consumers."
Mr Butler previously wrote to 29 insurers in December calling for an increase in premiums that was more in line with expectations of the community.
The letter came after insurers proposed a rise of between five and six per cent, which would be among the largest increases in 10 years.
"Based on the resubmissions the Department of Health received, I am not inclined to currently approve their proposed premium increases," the health minister said.
Customers are being urged to review their policies to ensure they're getting the best bang for their buck.
Compare Club head of research Kate Browne said the requested hike was a "worst-case scenario" but people should be prepared.
"Even if the funds are negotiated down by the health minister, we're still expecting a significantly bigger premium hike than last year," she said.
"Now more than ever, it's critical for Australians to remain vigilant and take proactive steps like reviewing their policies and comparing providers."
Ms Browne said the data indicates families who switch to better-value policies can save an average of $462 a year.
The increase in premiums will take effect from April 1.
It is estimated about 14 million Australians have a form of private health insurance.