Health insurance premiums in Australia are expected to rise by about 4% in 2026, says a new report by money.com.au.
The company’s latest analysis shows that in 2026 private health insurance premium increase could sit between 3.9% and 4.4%.
Data shows that although premium increases have sat below health inflation since 2021, the gap has been steadily closing. If health inflation stays near the 4% mark this year, the 2026 premium hike could fall in line with or even surpass health price inflation.
A 3.9%–4.4% premium rise would see singles on a combined hospital and extras policy pay an extra A$127–A$144 ($82 - $93) a year, while families would face an additional A$191–A$216 annually. These estimates are based on the average combined single policy costing A$3,264 a year and the average combined family policy costing A$4,908 a year.
Money.com.au general manager of Health Insurance, Chris Whitelaw, says the return of stronger premium increases will be felt by millions of policyholders.
“What we’re seeing is a reset. Premium increases stayed unusually low for years, and 2026 may be the year they return to a more ‘normal’, but still painful, growth cycle. There’s no doubt that a premium increase of around 4% would be a shock for many policyholders, especially after a few years of softer rises,” he said.