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For the first time in half a decade, the 15 million Australians with private health insurance face a steeper rise in their annual premiums. On Wednesday, private health insurers will submit their proposed insurance premium changes to Federal Health Minister Mark Butler for review. New analysis by Money.com.au shows next year's premium increase will break a five-yaer trend to align closely with health inflation. READ MORE: Radio icon John Laws dies aged 90 Soaring private hospital costs and wage increases are expected to drive up the cost of premiums. Money.com.au general manager of health insurance, Chris Whitelaw, said since 2021 and the aftermath of the pandemic, premium increases have been restrained but that is due to end. "Their pricing buffer is running out, and the private health sector is likely to recalibrate after several years of suppressed pricing. "We expect 2026 could mark the first year in half a decade where premiums and health inflation move in tandem," he says. READ MORE: Over 150 new school zone speed limits roll out in SA from today Butler said he expects health funds to show good faith in their proposals, but they are facing cost rises and a struggling private hospital sector. Health insurance premiums increased by an average of 3.73 per cent this year. The changes were announced in February after Butler twice knocked back insurers' earlier proposals for steeper increases of between 5 per cent and 6 per cent. In the lead-up to Wednesday's submissions, Butler said he expected private health funds to make "more strenuous efforts" to offer value to customers and help struggling private hospitals. His final decision - expected between December and late January - will determine how much more Australians will pay for private health cover when new premiums begin next April. DOWNLOAD THE 9NEWS APP: Stay across all the latest in breaking news, sport, politics and the weather via our news app and get notifications sent straight to your smartphone. Available on the Apple App Store and Google Play.
