Rate Rise 2025 FAQs
The Minister for Health and Aged Care, the Hon. Mark Butler MP, recently announced his approval of the annual premium increases for all Australian private health insurers. Below you’ll find answers to commonly asked questions about Navy Health’s rate change.
Rate Rise 2025 FAQs
Rate Rise 2025 FAQs
The Minister for Health and Aged Care, the Hon. Mark Butler MP, recently announced his approval of the annual premium increases for all Australian private health insurers. Below you’ll find answers to commonly asked questions about Navy Health’s rate change.
Why are premiums increasing?
In Australia, Private Health Insurance is community rated, meaning the cost of a product is independent of personal factors, such as your age, health or fitness.
There are a few reasons why premiums rise each year, including the growing number of people in need of hospital and health services, and the increased costs associated with providing these services, including hospital admissions and medical treatments.
Navy Health prides itself on being one of the most competitively priced funds in the industry. We are pleased to advise that our increase will be an average of 2.85%, which is lower than the industry average of 3.73%^, and our lowest increase in 17 years.
With continuing cost of living pressures, we are pleased to be a not-for-profit fund that is focused on returning more in benefits to Members and keeping your annual premium increase low.
^Refer to the Ministers’ media centre on the Department of Health and Aged Care website.
Why are premiums rising on 1 April?
The Minister has directed all Australian private health insurers to apply their premium increases on the 1st of April.
Can I lock in my current premium rate before the increase?
Yes, you can choose to pay your premium (or a portion of it) in advance. If you make this payment and we receive it before 1st April 2025, your payment will be based on the current premium rates. However, you can only pay up to a maximum of 12 months in advance from the date of your payment.
Please be aware that some forms of payments, such as bpay payments, can take up to 3 business days for us to receive. As such, we encourage you to make any advance payments before 28th March to ensure it is received in time
If you have already paid your premium in advance, you can only pay the difference between your current paid-to date and the future date you wish to pay up to, provided it does not exceed 12 months. The premium increase will then only apply after your new paid-to date.
For example, if your cover is already paid until 1st November 2025 and you wish to lock in your current premium rate, you can pay for the additional 5 months to cover the period from 1st November 2025 to 31st March 2026. This ensures your premium remains at the current rate for the next 12 months. This payment must be made in a lump sum and received before 1 April 2025.
How do I pay my premium in advance?
If you would like to pay your premium (or a portion) for up to 12 months in advance, you can do so through the Navy Health App, the Member Portal, or calling us on 1300 306 289 to make a payment over the phone. If your advance premium payment is received before 1st April 2025, your payment will be based on current premium rates.
Why is my increase different to the average?
This year’s 2.85% annual premium increase is an average across all policies, meaning the increase applied to your specific policy may be different. Individual premium changes vary based on factors such as the type of cover and your State or Territory.
Due to the community rated system, your personal factors such as medical history or claiming habits do not impact how much your premium increases. For example, all members in NSW with the same level of cover will receive the same increase. However, there are several additional factors that determine how much you pay for your individual premiums such has Lifetime Health Cover (LHC) loading, the Australian Government Rebate, and your Hospital Excess.
Should I review my level of cover?
We always recommend doing a regular cover review to ensure that you are on the best cover for your circumstances. Please don’t hesitate to call us on 1300 306 289 and we would be happy to assist with a review.
What if I’m experiencing financial hardship?
If you are experiencing financial hardship, we’re able to assist you. Please don’t hesitate to call us on 1300 306 289 and we would be happy to discuss options that could help.
Depending on your circumstances, you may be able to apply for a suspension on your policy. To learn more, visit here.
Need further assistance?
If you require further assistance, contact us by calling 1300 306 289 or email query@navyhealth.com.au.
