Nib’s premium increase of 2.72 per cent will be deferred until September 1, 2023, but the company said it would conduct another review mid-year.
Medibank and ahm health insurance premiums were set to rise by an average of 2.96 per cent from 1 April 2023, but the hike will be postponed to June 1, 2023.
Nib’s increase is the second lowest annual premium rise in 20 years and below the industry average of 2.90 per cent.
The industry-wide annual private health insurance premium increase was set to kick in from 1 April, after approval from Australia’s Federal Health Minister Mark Butler and the Department of Health and Aged Care.
Nib Chief Executive and Managing Director, Mark Fitzgibbon said the decision was made as Australians grapple with high cost of living, and soaring inflation.
Fitzgibbon said the continued slow pace of claims also was factored in.
“Householders are facing very strong cost of living pressures,” Mr Fitzgibbon said.
“Nib’s premium increase is below the industry average, much lower than inflation, and less than the price rises we have experienced in many parts of the health sector.
“We also anticipated claims would be back to pre-COVID levels by now, but we have not seen that yet.
“We’re conscious of containing premium increases, in line with our commitment not to profiteer from the COVID-19 pandemic, and with an ongoing focus on value for members.”
Nib has postponed its annual premium increase three times since the beginning of the pandemic.
Medibank Group Executive, Customer Portfolios, Milosh Milisavljevic also said cost of living pressures drove the company’s decision.
“We are committed to ensuring that private health insurance remains affordable and accessible for all Australians,” he said.
“With inflation and interest rates continuing to rise, we know that many Australian household budgets are under pressure, which is why we have worked hard to deliver our lowest premium increase in 22 years.”
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Most economists are predicting an 0.25 per cent increase this afternoon but some believe it could rise by as much as 0.5 per cent, which would bring the cash rate to 3.6 per cent.