Reducing the sting of rising health insurance costs

Reducing the sting of rising health insurance costs

Private health insurance premiums rose more than four per cent on average in April, leading people to consider asking their health insurer for a better deal. RMIT experts share five tips to help Australians negotiate a better deal. 

Co-authors Lisa Farrell and Meg Elkins:  

It can be hard to negotiate the price of your plan directly, so you could be better off negotiating other aspects of your policy. For that, you will need to do a little homework. 

  1. Optimise your excess, cover and extras. Reconsider your excess and the level of cover for hospital and extras. It’s important to know that the level of cover and your extras don’t have to be the same. 
  2. Know what you need. Many people set up their plan in early adulthood and forget to review. Our medical needs change over time and you could be paying for things you no longer need. 
  3. Find a better deal to bargain with. It is important to know the cost of competitors’ premiums for similar policies that suit your needs. You can use comparison sites to seek a comparable product to use as a bargaining tool with your current provider. 
  4. Ask what they will offer to keep you. Don’t be afraid to ask what deals and promotions your existing health insurer can offer to keep your business. 
  5. Strike at the right moment. This is the best time of year to review as policies have just increased and providers are most willing to negotiate. 

Read more at The Conversation

Lisa Farrell is a Professor of Economics (Health Economist) at RMIT University, specialising in the economics of disadvantage and vulnerability.  

Meg Elkins is an Associate Professor of Economics (Behavioural Economics and Community Wellbeing) at RMIT University, specialising in community wellbeing and dynamic pricing. 

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General media enquiries: RMIT External Affairs and Media, 0439 704 077 or news@rmit.edu.au

29 April 2026

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29 April 2026

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