NIB, Medibank, Australian Unity shares lift as premiums rise
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The news: Shares in three of Australia’s health insurers — NIB, Medibank and Australian Unity — rose in early trading on the ASX following approval by the federal health minister to increase premiums.
The numbers: Earlier today, the Federal Minister for Health and Aged Care Mark Butler announced that the government approved an average industry health insurance premium increase of 3.03%.
Following the announcement, NIB said its 2024 health insurance premiums would rise by an average of 4.1%, effective 1 April 2024, while Medibank said its premiums would increase by 3.31%.
Australian Unity has yet to announce any premium changes.
Shares in NIB rose 2.04%, Medibank shares increased 1.76%, and Australian Unity was up 0.18% in early trading on the ASX.
The context: Butler said the increase was “well below the annual rise in wages, social security payments and inflation, with wages rising by 4.2% and inflation increasing by 4.1% in 2023, and social security payments increasing in line with inflation”.
He noted the increase was to ensure Australians received value for money from their private health insurance.
What they said: “The increase in health insurance premiums is much lower than the increase to the cost of other insurance products, which rose by around 17% in 2023,” Butler said.
NIB CEO and managing director said the premium increase reflected the return of hospital and ancillary treatment post Covid-19, and a rise in health and medical treatment costs.
The sources: Department of Health and Aged Care, ASX announcement, ASX announcement
