Price of good health

A record number of Aussies are taking out private cover, but for others the cost outweighs the benefits

- ELIOT HASTIE

It's expensive, but it's better than nothing - that's a common attitude to private health cover. The Australian Prudential Regulation Authority reported the 10th consecutive period of growth for the private health industry in the December quarter of 2022.

A record 14.42 million Australians (55% of the population) now have private healthcare with membership growing by 2% over 2022.

Even younger Australians are realising the benefits of private health insurance, such as 25-year-old Hayden Lenord, who says he has had it consistently for the past two years.

"I initially got it because I had a few medical issues that needed attention and I didn't want to pay out of pocket," he says.

Lenord says he grew up without private health insurance, but when he became an adult he realised it was the little things that made a difference.

"It gives you peace of mind to know you can go to these appointments and not be out of pocket. It means I will go and get checked rather than delaying it, which could cost more down the line."

Not everyone is this enthusiastic as the cost-of-living crisis continues to bite.

Rising interest rates and inflation have meant Australia is now one of the most expensive places in the world, according to cost-of-living calculator Expatistan, which estimates the current monthly cost of living for a family of four to be $7688.

Health insurance costs are set to rise, too, with the federal government estimating an average 2.9% premium increase for policyholders this year, starting on April 1. Data from the personal finance marketplace Compare Club shows that families could see their premiums increase by $141 over the year, while retirees could see an average increase of $167. On average a single person will pay an extra $1.17 a week, and a family $2.58 extra a week.