Five ways to cut your health insurance bill before April 1

Locked in by the Federal Government, this year's 4.41% industry-average hike to private health insurance prices is the highest rise since 2017. A gut-punch to already-struggling households, who've been balancing budget pressure from all directions for years now.

In new research by iSelect, around 90% of policyholders told us they're concerned about another hit. It is bad news but, if you're savvy, there are still ways to claw back some money.

Now is a great time to act, review your policy and see where you could be saving.

What does a 4.41% rise look like in dollars?

Firstly, it's important to keep in mind that 4.41% is the average across all funds. Some will go up more, and others by much less. In fact, the highest increase published by one fund was 5.98%. The lowest was 1.98% - a full four percentage points less.

But what does all this actually mean for Aussies? We looked at our 2025 sales data and found that couples spent an average of $5259 on their cover for the year. That 4.41% average increase would add $231.92 to their premiums.

So, what are the key moves to make to help reduce these costs, without ditching your cover all together?

Is health insurance still even worth paying for?

The iSelect survey revealed 'extra peace of mind' dominated the reasons why Aussies said they have health insurance (54%) in the first place.

Having an adequate level of hospital cover may be comforting, knowing that in the unfortunate event of a serious illness, you and your loved ones could have access to private healthcare, including more choice of where and when you'll be treated.

So, how can you save money then?

Check if you can afford to lock in your current rate, right now

If you're in the financial position to do it, some funds may let you pay for your cover six or 12 months in advance. Do this before 1 April, and you could lock in your current rate before any rise kicks in.

Not every fund does this, so you'll need to check, as it's not a guaranteed hack.

Make sure you're not paying for things you don't need

While you're reviewing your policy and shopping around, you may find that your current plan doesn't suit you or your family.

You could be forking out money for things you don't need. For younger people this could include cardiac, cataracts or joint replacements.

The same goes for Extras cover too. These vary a lot between funds, both in what's covered and how much you'll get back in rebates. Some funds may let you combine your annual Extras limits into one single limit, for you to use across the services you use the most!

Of course, if you've not using Extras, why pay for them? Consider opting for hospital cover only.

Consider a higher excess (if this fits your risk comfort)

In general, the higher your excess, the lower your premiums may be.

If you think it's unlikely you'll be admitted to hospital soon, it may be worth weighing up.  Just remember to check government penalties and incentives such as the Medicare Levy Surcharge before you make any changes.

Check for any deals, offers or incentives

Some funds run promos at different times of the year. Think gift cards, weeks free or waiting periods waived. But don't be lured by the cheapest deal, as the policy may not suit your needs.

Don't fall for the 'loyalty tax'

Comparison services can assist you with finding cover that suits you and your family's needs, circumstances and budget by comparing your current policy against a range of policies and providers.

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