Rate change, also known as rate review, happens annually in the private health insurance sector. Every year, Australian health insurers review their premiums to ensure they are priced relative to the rise in healthcare costs.

Private Healthcare Australia, the industry’s peak representative body, puts the annual increase in healthcare costs at 4.7%.

This year, with a keen eye on maximising value and affordability for members, we’ve kept our premium increases to an average of 3.42%. However, while premiums on some products will increase, others will remain the same or decrease.

We’re committed to ensuring our premiums are reasonably priced and we look at opportunities to improve our covers and the value we offer our members. For this reason, we’re introducing a new bronze hospital cover, extending extras benefits, and adding a single parent family rate for all products.

Will my premiums go up?

We’re writing to all our members from 15 February to advise of any changes to premium pricing. Even if your premiums are staying the same or reducing in price, we’ll be writing to you so expect to hear from us for confirmation of your 2021 pricing. The new pricing will apply from 1 April 2021.

Can I lock in my current rate?

Pay your premiums in advance by 31 March 2021 and your premiums will remain unchanged for the duration of that advance payment, which can be a fortnight to 12 months.

Upfront payments of 12 months in advance attract an additional discount of 4%, or 2% for payments six months in advance. (Please note that advance payment discounts are not available in conjunction with any other discounts that may be on offer.)

See our payment options for more information about paying your account.

Aside from premium changes, what else is happening?

This year, we’re introducing a range of product improvements to ensure all our members have access to great value products suited to their individual circumstances and budget.

The new bronze hospital cover, with a $250, $500 and $750 excess, is a cost-effective cover for the most common hospital treatments, including tonsils, adenoids and grommets, joint reconstructions, hernia and appendix, chemo and gastrointestinal endoscopies. This product will be sold from 1 March 2021.

We’re extending emergency ambulance cover - for all hospital and extras covers that we currently sell, ambulance coverage will increase from two emergency transports a year to unlimited.

And we’re adding a single parent family rate, aimed at improving affordability for families, which will mean reduced premiums for many one-parent households.

Why is there another rate review when there was one in October?

Mindful of the financial stresses induced by the pandemic lockdown, our 2020 annual rate rise was deferred for six months, from 1 April until 1 October. This means that there were no price increases for that period.

This and other measures were part of an $8M support package for our more than 81,000 members.

Need to discuss your policy?

We know that affordability is important for our members, which is why we're here to help.

If your circumstances have changed, it may be a good time to review your health cover – compare our hospital covers or compare our extras covers online, call us on 1300 362 144 or email us on info@lhs.com.au. Alternatively, drop in to one of our branches.

More information

For more information about the 2021 rate review, please see our frequently asked questions.