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The 2026 increase, fund by fund
The federal Health Minister approved the 2026 premium changes in February. Increases land on 1 April and apply to every policy with that fund — Basic to Gold, singles to families.
- AIA Health: +5.98% (well above average)
- nib: +5.47%
- Medibank: +5.10%
- HCF: +4.96%
- Bupa: +4.80%
- Industry average: +4.41%
- HBF: +2.15% (well below average)
- GMHBA: +1.98% (lowest of the majors)
Gold cover is up ~71% in five years (CHOICE)
Consumer group CHOICE reported in 2026 that the average Gold hospital + extras family premium is now roughly 71% higher than it was in 2021. That's well ahead of wage growth and a big reason a third of Gold policy-holders have downgraded to Silver Plus in the last two years.
Silver Plus typically covers everything most families actually claim on, minus pregnancy and a handful of Gold-only services like cataract surgery and joint replacements. For families past the baby stage, Silver Plus often saves $2,000–$3,500 a year with no real-world reduction in cover.
What to do about it
Option 1: Prepay before 1 April
Every fund lets you prepay up to 12–18 months at the current price. If your cover already fits, locking in the old rate before April saves the full increase for a year. The catch: you need the cash up front and your direct debit needs to be paid in full before 31 March.
Option 2: Switch to a lower-increase fund
Switching to a fund with a 2–3% increase instead of 5–6% saves around $200–$500 a year on a typical family policy — every year, not just once. Waiting periods carry over on equivalent cover, so this is the lower-effort, higher-return option for most people.
Option 3: Right-size your tier
If life has changed since you last looked at your cover (kids off the policy, past the baby stage, retired), the biggest savings come from moving down a tier rather than switching fund. Silver Plus instead of Gold often saves more than any premium increase would cost.
Frequently asked questions
- When does the 2026 health insurance increase start?
- 1 April 2026. Every policy with that fund moves to the new price from that date.
- Can I avoid the price rise by prepaying?
- Yes. Prepaying up to 12 months before 31 March locks in the current price for a year.
- Which fund had the smallest 2026 increase?
- GMHBA at 1.98%, followed by HBF at 2.15%. Both are well below the 4.41% industry average.
Written by
Victor Mourad
Co-Founder & Health Insurance Advisor · 10 years in health insurance · Melbourne
Victor co-founded Comparify to make Australian health insurance easier to understand. He writes on policy changes, the annual rate rise and what they actually mean for households.