Rising Costs and Growing Concerns
A recent survey has revealed that nearly one in three readers of nine.com.au admitted they couldn’t afford private health insurance even before this week’s significant price increase. This comes as health insurers across the country raised premiums by an average of 4.41 per cent, marking the largest hike since 2017. The increase is expected to add between $80 and $160 to annual costs, depending on the level of coverage.
A Survey of Public Sentiment
Earlier this week, a survey conducted by AI digital broker Konkrd suggested that nearly one in four Australians planned to downgrade or cancel their private health insurance due to the price hikes. However, the responses from nine.com.au readers tell a different story. Out of 1121 respondents, up to 30 per cent reported that they never had private health insurance in the first place.
Many of these readers said that private health insurance had become too expensive for them long before the latest price increase. One reader shared, “I haven’t been able to afford health insurance for decades.” Another mentioned that they had cut back on holidays, clothes shopping, and other expenses but still couldn’t afford private cover even before the premium increases.
Impact of the Price Hike
Just over 10 per cent of nine.com.au readers who did have private health insurance said they cancelled their cover in response to this week’s price hike. A little more than half of them 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 price hike, nearly 80 per cent of respondents said they plan to keep their current policy, even though it costs more. One older Australian shared, “I’m too scared to cancel health insurance due to mine and my husband’s age.” This concern was common among respondents aged 65 and over, with many expressing fears about the waiting times for non-urgent treatment if they were to lose their coverage.
Financial Struggles and Future Worries
Respondents who decided to cancel or downgrade their coverage 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 not feasible for many Australians already 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 said, “Any further increases may require me to cancel insurance altogether, as being a pensioner it is becoming extremely difficult to cope with the 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.
The Nine.com.au Poll
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, it is important to consider its appropriateness in light of personal circumstances.
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