As current reports reveal, this is going to be the lowest possible rise in the premiums of health insurance since the last 17 years where singles and families are predicted to pay an added $1.40 and $2.75 per week. Federal health minister Greg Hunt recently announced that the health funds are going to face an average rise of 3.95% by the month of July, 2018. The Minister also added that the low rise in premium usually comes due to the fact that the government decided to take off the pressure from private health insurance.

For the families in Australia, every dollar counts and though this is marked to be the lowest possible rise since the last 17 years, there is enough work to be done. Studies reveal that more than 14 million Australians own a private health insurance policy and hence it is important to take note of the fact that the coverage is affordable enough and that it offers enough value for their dollars. The extent of the increase will be extremely palatable to the 14 million Australians who already hold a health insurance policy as against the previous years.

As per what Mr. Watson has to say, the average hike will be around 3.95% but the consumers and policyholders could witness an increase of 2.28% and 8.90% based on the kind of health insurance policy they have. This is in fact that part of the year when people will be taking a closer look on whether they’re still receiving proper value on the health insurance and deciding to either change their insurance provider or stay with them or cancel the insurance policy.

These reforms were initially announced in the month of October, 2017 and since then it had an impact on health insurance premiums and they will continue having an impact. Every single dollar from the $1.1 billion reform is being devoted to the policyholders and this has led to the lower premium rates this year. In a nutshell, this reform will deliver you savings which are worth $1.1 billion to the Australians with their private health insurance policy. The government is also investing about $6.4 billion in a year in the private health insurance market for maintaining affordable premiums.

Mr. Watson also added that the change in discounts post the rise in premium announcement will offer more clarity on the actual impact on the premiums. As inflation is lower than the premium increase, this will lead to a reduction in the total amount of federal rebate and this is experienced by the Aussie policyholders.

Other health funds like iSelect also confirm an increase of average premium from 1st July of 3.39% and 3.88%. This is indeed one of the greatest news for the consumers and especially the members here. Affordability is usually a big concern and hence the authorities are offering relief to the members.

Therefore, when you’re wondering about the ways in which the increase in premium can have an impact on your reform package, you needn’t fret as the Australian government is planning to offer you relief and assistance.