Health Insurance Premium FAQs

HBF will not be increasing premiums until 1 April 2021.

Every policy owner will be sent a communication to advise them of their new premium. This will come into effect on 1 April 2020. Your current premium is also available in myHBF and will be updated on 1 April 2020.

HBF are working to ensure we support our members through this difficult time. For a full list of initiatives, please visit our COVID-19 member hub.

To calculate a premium, we use claims and service cost data from previous years to estimate the amount we’ll need to spend in the coming year. Premiums are then adjusted for each type of cover in each state, so we can safely cover those predicted costs.

Premium increases aren’t calculated at an individual member level. Your premium change just depends on the kind of cover you have and the state you live in. Community rating a legislation means everyone with the same cover will have the same premium change.

Your final premium amount each year will be a combination of the cover's change, any discounts (like a direct debit or corporate discount), your Lifetime Health Cover loading, and your Australian Government Rebate on Private Health Insurance.

The way health funds calculate premium increases doesn’t go unchecked. The Federal Health Minister’s office as well as APRA (Australian Prudential Regulation Authority) are required to sign-off on all average premium increases and have the final word on whether the proposed increases are reasonable.

There are many things you can do to lower your premium. You can:

• Take advantage of payment frequency discounts e.g. get a discount for paying yearly instead of fortnightly.
• Increase the excess on your hospital insurance.
• Review the services on your policy.

To get the most value from your health cover, the best thing to do is make sure it features the services you need to support your health and lifestyle.

If you are experiencing any financial hardship we encourage you to call us on 133 423.

Your Government rebate may be less than it was last year because of the way the rebate is calculated. While your rebate will change depending on your income and age, the rebate percentage itself is adjusted year on year in line with the overall rate of inflation (Consumer Price Index; or CPI) and generally decreases over time.

The rebate you receive is calculated based on your age and income, which we request at the time you set up your health cover.

If you have not given us information about your age or income tier, or your information is not accurate, it may impact your next tax return. To check or update your rebate details, login to myHBF.