Nib’s health insurance premiums will rise by an average of 5.79%, effective 1 April 2025, following approval by the federal Minister for Health, Mark Butler.
The firm’s MD and CEO, Ed Close, says the increase reflects higher healthcare costs, and increased use of services.
“Medical costs remain high, especially hospital costs, wages, and medical supplies, which drive premiums up,” he says.
The firm has renewed major contracts with the private hospital sector in recent months, which is also reflected in its premium increase.
Nib also continues to expand its provider networks, with the introduction of ‘Known Gap’ in October 2024. Known Gap provides eligible members with capped out of pocket expenses when treated by a participating specialist.
Nib also expanded its ‘No Gap’ services, ensuring eligible members can access zero out of pocket costs across some general and preventative dental procedures, when treated at one of 200 participating dental centres across Australia.
Close says Nib’s premium increase also includes the NSW Government’s request for higher payment for private rooms in public hospitals, effective 1 January 2025.
The company has a large number of members in NSW, and their premiums will reflect those higher bed rate payments. Nib estimates this will cost more than $20m a year.
“Private health insurance pays for around four of every five private hospital admissions,” says Close. “In FY24, Nib funded $1.88bn in claims on behalf of Australian members, or about $5.1m in claims a day.”
