The Australian government has approved an average 6.2 per cent rise in the annual cost of private health insurance, set to come into effect on April 1 2014.
This will result in many households around the nation being an additional $150 out of pocket each year.
The scheduled 2014 health insurance premium increases are 0.6 per cent above the average rise in 2013.
During the last year, the number of Australian health insurance claims was larger than previously recorded. The national cost of benefits paid rose by 8 per cent on 2012 figures.
With premiums rising three times faster than inflation, many Australian families may begin to struggle to cover the costs of their household health insurance needs.
The negative results of higher premiums is already being felt across the Australian public health system as the population opts for less cover to save costs.
In an effort to decrease their premium payments, many Australians are expected to forgo extra cover from their health insurance policies, which will result in an increased demand on the public resources.
Already, more than 300,000 people have increased their excesses or co-payments in an effort to achieve cheaper cover, according to a December 28 article from the Sydney Morning Herald.
However, there are other options available for Australians wondering how to cope with rising premiums.
Instead of increasing co-payments or deleting important cover from essential policies, Australians are encouraged to review their options within the health insurance industry.
Additionally, you can speak with the team at HICA to find out more about what you can do to respond to rising private health cover expenses.
By identifying your individual needs and comparing health insurance policies, HICA can ensure you choose the cover that is suitable for your situation and budget.
For more information, get in touch with HICA today.