<?xml version="1.0" encoding="ISO-8859-1"?> <docID>337627</docID> <postdate>2025-02-05 13:08:28</postdate> <headline>Insurance premium hike needs to be justified: minister</headline> <body><p><img class="size-full wp-image-337628" src="https://citynews.com.au/wp-content/uploads/2025/02/20221110001728062433-original-resized.jpg" alt="" width="900" height="601" /></p> <caption>Australians are being advised to shop around, with health insurance premium hikes on the horizon. (Diego Fedele/AAP PHOTOS)</caption> <p class="wire-column__preview__author"><span class="kicker-line">By <b>Andrew Brown and Tess Ikonomou</b> in Canberra</span></p> <p><strong>Any looming rise in health insurance premiums would be "proportionate", the health minister says, following fears of a large increase.</strong></p> <p>Data from comparison business Compare Club has shown a projected rise for 2025 of six per cent, up from previous increases of 3.03 per cent in 2024, and 2.9 per cent in 2023.</p> <p>Under such an increase, customers would be forced to fork out an extra $369 per year for their policy.</p> <p>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.</p> <p>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.</p> <p>"It is my responsibility as health minister to ensure that any private health insurance premium increase is justified and proportionate," he said.</p> <p>"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."</p> <p>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.</p> <p>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.</p> <p>"Based on the resubmissions the Department of Health received, I am not inclined to currently approve their proposed premium increases," the health minister said.</p> <p>Customers are being urged to review their policies to ensure they're getting the best bang for their buck.</p> <p>Compare Club head of research Kate Browne said the requested hike was a "worst-case scenario" but people should be prepared.</p> <p>"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.</p> <p>"Now more than ever, it's critical for Australians to remain vigilant and take proactive steps like reviewing their policies and comparing providers."</p> <p>Ms Browne said the data indicates families who switch to better-value policies can save an average of $462 a year.</p> <p>The increase in premiums will take effect from April 1.</p> <p>It is estimated about 14 million Australians have a form of private health insurance.</p> </body>