Rising Costs and Struggling Australians
A recent survey has revealed that a significant number of Australians are finding it increasingly difficult to afford private health insurance. The findings come as health insurers across the country have raised premiums by an average of 4.41 per cent, marking the largest increase since 2017. This hike is expected to cost Australians an additional $80 to $160 per year, depending on their level of coverage.
The decision to raise premiums has come at a time when many Australians are already grappling with a cost-of-living crisis. The survey, conducted among nine.com.au readers, highlights the financial strain being experienced by individuals who are unable to keep up with rising expenses.
A Growing Concern
According to the survey, nearly one in three nine.com.au readers admitted they couldn’t afford private health insurance even before this week’s price increase. Out of the 1,121 respondents, up to 30 per cent reported that they didn’t have private health insurance to begin with. Many of them said that the cost had become too high for them long before the latest hike.
One reader shared, “I haven’t been able to afford health insurance for decades.” Another added that they had cut back on holidays, clothes shopping, and other expenses but still couldn’t afford private cover even before the premium increases.
Changes in Coverage
Just over 10 per cent of nine.com.au readers who currently have private health insurance said they cancelled their cover in response to the recent price hike. A little more than half of these respondents moved to a cheaper policy, while the rest are now uninsured. About one in 10 respondents said they intend to cancel their current policy now that premiums have increased.
Despite the hikes, nearly 80 per cent of respondents said they plan to keep their current policy, even though it will cost more. One older Australian explained, “I’m too scared to cancel health insurance due to mine and my husband’s age.” This sentiment was common among respondents aged 65 and over, who expressed concerns about the waiting times for non-urgent treatment.
Financial Challenges
Respondents who decided to cancel or downgrade their cover cited the rising cost of living as the main reason. Paying for private health insurance on top of increased grocery, housing, and petrol prices is becoming increasingly unfeasible for many Australians struggling to make ends meet.
Many nine.com.au readers worry that the situation will only get worse. Nearly 80 per cent of respondents said they were at least “slightly worried” about being able to afford private health insurance going forward. More than one in three reported feeling “very worried” about it.
One reader shared, “Any further increases may require me to cancel insurance altogether, as being a pensioner it is becoming extremely difficult to cope with cost of living.” Close to half of respondents said they’ve cut back on spending on holidays, clothes, and other non-essentials to be able to afford private health insurance. More than 10 per cent said they’d be willing to cut back on essentials like groceries and rent.
Survey Details
The nine.com.au poll, which runs once a fortnight, canvases the views of the Nine audience on 9Nation, an online community of readers and viewers. The information provided on this website is general in nature only and does not constitute personal financial advice. It has been prepared without taking into account individual objectives, financial situations, or needs. Before acting on any information on this website, users should consider its appropriateness based on their own circumstances.
