133 423

Health Insurance Premium FAQs

Find out what you need to know about the 2021 premium increase.

Last updated:

If you cancelled the 2020 premium increase, why won’t you cancel the rate rise in 2021?

The decision to increase premiums from 1 April 2021 reflects the rising cost of healthcare services in Australia.

It ensures we can continue to cover the cost of claims and services for our members and make ongoing investments to assist HBF to provide greater value to members both now and into the future.

Is the 2021 rate increase compensating for the cancellation of the 2020 rate increase?

Not at all. Our decision to raise premiums from 1 April 2021 reflects the rising cost of healthcare services. It will enable HBF to continue to cover the cost of claims and services for our members and make ongoing investments to assist HBF to provide greater value to members both now and into the future.

HBF has delivered some of the lowest premium increases of the major health funds over the past 10 years.

How can my premium go up when I never used my health insurance due to COVID-19?

The COVID-19 pandemic saw hospital and ancillary services postponed for only a short period of time. HBF introduced temporary benefits for certain Extras services delivered by telehealth, and these benefits have been extended until 30 June 2021. Allied health services have returned to normal and all of the government’s temporary restrictions on elective surgery have been lifted.

It is also important to remember that the cost of your health insurance never goes up when you make a claim. This is because health insurance works differently to other types of insurance. For example, with car or home insurance, premiums typically go up depending on how likely you are to claim.

When will my premium increase come into effect?

HBF will be increasing premiums on 1 April 2021.

When will I find out my new premium?

Every policy owner will be sent a communication in February 2021 to advise them of their new premium. This will come into effect on 1 April 2021. You can view your current premium in myHBF; this will be updated with your new premium on 1 April 2021.

What else are you doing to help members at this time?

HBF is working to ensure we are still supporting our members through this uncertain time. For a full list of initiatives, which have been extended until 30 June 2021, please visit our COVID-19 member hub.

How is my premium calculated?

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 applies to private health insurance, it 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 premium change, any discounts that you have (like a direct debit or corporate discount), your Lifetime Health Cover loading, and, if applicable your Australian Government Rebate on Private Health Insurance.

Calculation of premium increases is subject to external scrutiny. To obtain a premium increase an application must be submitted to the Australian Government Minister for Health. The Department of Health and the Australian Prudential Regulation Authority (APRA), the independent health insurance financial regulator, assess all applications to increase premiums before these are passed to the Minister of Health to consider. A health fund needs to provide sufficient information to demonstrate to the Minister of Health that the increase is necessary. If an increase is regarded as contrary to the public interest it will not be approved.

It looks like you're from Outside Australia

We need to confirm your location to show you the correct content, products and pricing.

No, I'm not from Outside Australia

Sorry, your product selection isn't available if you live outside Western Australia.

Our products and prices differ from state to state. So we need to make sure you're looking at the right information to give you an accurate quote.

You're about to see content designed for people outside WA.

Content, products and pricing information is different if you live in Western Australia.

Oops! This product isn't available in your state

The product you’ve selected isn’t available for purchase in your state.

Please select your state or territory

We need to confirm your location to show you the correct content, products and pricing.

Change your state or territory

If you change location, we'll reset your quote and refresh the page to show you the content, products and pricing relevant to your location.

WA NSW VIC SA TAS NT QLD ACT I'm visiting from outside of Australia

It looks like you're from Outside Australia

We need to confirm your location to show you the correct content, products and pricing.

No, I'm not from Outside Australia

Sorry, your product selection isn't available if you live outside Western Australia.

Our products and prices differ from state to state. So we need to make sure you're looking at the right information to give you an accurate quote.

You're about to see content designed for people outside WA.

Content, products and pricing information is different if you live in Western Australia.

Oops! This product isn't available in your state

The product you’ve selected isn’t available for purchase in your state.

Please select your state or territory

We need to confirm your location to show you the correct content, products and pricing.

Change your state or territory

If you change location, we'll reset your quote and refresh the page to show you the content, products and pricing relevant to your location.

WA NSW VIC SA TAS NT QLD ACT I'm visiting from outside of Australia