Premium changes.
Everything you need to know.

In a nutshell

Premium changes take effect from 1 April 2017. You’ll receive a notification before this to confirm any changes to your premium.


Health insurance premiums are reviewed each year by every health insurer (not just ahm), with most making changes to their premiums during this period.

Any increases to premiums reflect rising health costs, due to:
  • increased use and cost of health services.
  • the growing use and cost of medical technology.
  • Australia’s ageing population.
  • an increase in chronic conditions.

Looking for ways to save on health insurance costs? Chat to us about reviewing your cover.

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Common questions

About the premium change

Why do health insurance premiums go up every year?

Premium increases reflect rising health costs, due to:

  • increased use and cost of health services.
  • the growing use and cost of medical technology.
  • Australia’s ageing population.
  • an increase in chronic conditions.

The Australian Government Rebate (AGR) tier percentage is also decreasing each year.

Will my health insurance premium change and when will I find out?

You will receive a notification in March which will tell you if your premium is changing and what it is changing to. Any premium changes are effective from 1 April 2017. Your notification will come by email or letter, depending on your preferred method of communication. You can change how we communicate with you by managing your preferences online via Member Services. If you haven’t received your notification by 1 April, Live chat with us or call us on 134 246.

Why do premiums of different health insurance products increase at different rates?

We review the premium of each product individually, then make adjustments which factor in the type of product (e.g. hospital or extras, entry or top cover), claiming activity and the state that the members live in. These adjustments ensure our products are sustainable, and we can keep paying member claims. Other factors that may impact your premium include changes to the Australian Government Rebate (AGR) on private health insurance and Lifetime Health Cover loading (LHC).

I haven’t received my premium change notification. How can I get it?

If you haven’t received a notification by 1 April, you can get a copy by logging in to Member Services. You may not have received it because the contact details are incorrect or out of date. When you log in you can check we have the correct details. If you can’t log in, you can Live chat with us or call 134 246.

Why is my premium change different to the industry average the media reported?

The industry average is calculated using the figures from all health insurers in every state, across all products. That’s why increases in the premiums of some products will be higher, while others will be lower.

Why has my premium gone up more than the Consumer Price Index (CPI)?

Healthcare service costs and the CPI go up at different rates. Healthcare costs are currently rising faster than the average cost of the selected range of goods used to calculate CPI.

If I rarely make claims, will my premium still change?

Yes, we can’t charge you less for not using your cover or charge you more for using it. Private health insurance in Australia must meet the government’s community rating requirements. This means everyone has access to the same insurance products at the same price, regardless of their health or claiming behaviour. The Lifetime Health Cover (LHC) is an exception to community rating - you will have to pay a higher premium if you have a LHC loading.

About payments

I pay my premium by direct debit – do I need to do anything for the premium increase?

No, the new payment amount will be updated automatically on 1 April.

I pay my premium from payroll deductions – do I need to do anything for the premium increase?

No, we will notify your pay office about the change, and they will update the amount that is deducted. Please check your first pay after 1 April, to ensure the correct amount has been deducted. If it hasn’t, please contact your pay office.

What can I do to save on health insurance costs?
  1. Review your cover:
    We can assess your cover and see if you’re on the right policy for your needs. This will assist you to get better value by only paying for things you are more likely to need. We have a range of affordable policies to suit your needs and budget.
  2. Make the most of your extras:
    Have a good look at your policy so you know exactly which extras you can claim benefits towards. Then you’ll get better value because you’ll use more of the benefits you’re entitled to.
Can I prepay my health insurance premium?

You can prepay your health insurance and you’ll be able to lock in your current premium for the period you prepay*. You can prepay up to 12 months of premiums to 31 March 2018.

Here’s how you can prepay:

  1. Login to Member Services.
  2. Live chat with us.
  3. Call us on 134 246.
Please note, if you make a change to your cover (other than changing your address) or you suspend your cover, the new premiums will apply from the date the change is effective. If you move to another state, your premiums and ‘date paid to’ will change. The new premiums will also apply.

*Payments must be receipted against your policy by 31 March 2017 to qualify for any premium lock. Just remember that some payment methods may take a few business days to process. We recommend making your payment by 28 March 2017 to allow for processing time.

About the Australian Government Rebate

What is the Australian Government Rebate (AGR) on private health insurance?

This is an amount that the Australian Government may contribute towards the cost of your health insurance premiums. Australian residents who hold private health insurance and qualify for Medicare may be entitled to it. For information about the AGR go to privatehealth.gov.au

Am I eligible for the Australian Government Rebate?

Eligibility for the AGR is based on your income, the age of the oldest person on your private health insurance membership, and your family status. To see if you are eligible for the AGR go to privatehealth.gov.au

Will the Australian Government Rebate change on 1 April 2017?

Yes, new AGR percentages will apply to all Australians who are eligible for the AGR, not just ahm members. From 1 April 2017, the AGR percentage will decrease. For information around the AGR changes for 2017, go to privatehealth.gov.au

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