Rate Rise

As a not-for-profit health fund, we only ever increase premiums to manage the rising cost of health care and ensure we can continue to improve the value of your health cover and provide comprehensive and reliable care. Several factors contribute to this increase, including rising healthcare costs and increased usage of healthcare services.  

We understand that the cost of living has increased, and it can be a tough balance between looking after your health and looking after your budget. If you’re considering whether your cover is still right for you, we’re happy to talk you through your options and see if we can save you money. Please call us on 1800 808 690 – we’re here to help. 

Yes, you can prepay at the lower rate for up to 12 months. However, you must do so before 1 April 2026.  You can prepay by: 

• Credit or debit card via the Peoplecare app or Online Member Services by 11:59pm Tuesday 31 March 2026  
• Direct debit – by 5pm Wednesday 25 March 2026  
• BPAY – before your bank's close of business on Thursday 26 March 2026. 

As a not-for-profit member-owned health fund, we only ever increase premiums in line with what it costs to pay claims and run our fund. Any increases we make must be approved by the government, which applies to all health funds. 

We can’t charge members less if they haven’t made a claim, or more if they have. This is a rule set by the government to make sure that everyone has the same access to private health insurance (it’s called ‘community rating’).

There are many ways we control premiums for our members, including: 

• Reviewing your cover to look for savings
• Working with the Australian Health Service Alliance (AHSA) to increase our negotiating power with hospitals and doctors
• Working with industry bodies to lobby the Government for changes that make healthcare more affordable for everyone
• Advocating for the Access Gap scheme to reduce out of pocket expenses.
• Offering products designed to be sustainable into the future 

You don’t need to start paying the new premium until your next payment is due. For example, if you’re paid up to 31 May 2025, you’ll start paying the new amount from 1 June 2025. 

There are many reasons private hospital cover is important, including:  

• Peace of mind knowing you can have access to private hospitals with state-of-the-art facilities 
• Being in control of your health, by selecting the Doctor or Specialist of your choice
• Getting treated when you need to in a private hospital, instead of spending months (even years) on a public hospital waiting list 
• If you earn over the threshold for Medicare Levy Surcharge (currently $101,000 for singles and $202,000 for families), you may have to pay the Medicare Levy Surcharge if you don’t hold hospital cover. 
• Not being penalised with a Lifetime Health Cover loading (a government initiative for all Australians who don’t take out private hospital cover before turning 31).   

You might be surprised by how much it costs to pay for a private hospital procedure if you don’t have private hospital insurance. To give you an idea, these are the highest hospital costs for individual Peoplecare members we paid in the 2025 financial year: 

No. As a not-for-profit member-owned fund, we don’t pay dividends to shareholders. Instead, surplus funds are reinvested to benefit our members through better value, services and support. 

Yes, we can assist members in financial hardship. Call us on  1800 808 690 to talk about the options for your situation. 

We’re improving our Extras cover by including benefits for Natural Therapies from 1 July 2026. This is effective 1 July as this is when all our Extras benefit limits reset. 

Public Hospital or Silver Hospital are closed and no longer available. 

When you move to your new cover, you won’t need to re-serve any hospital waiting periods that you have already served for services with the same level of cover. However, you’ll be required to serve the remainder of any waiting periods if you’re still within the waiting periods for that hospital service. 

If your new cover includes services that were excluded or restricted under Public Hospital or Silver Hospital, you can access these services after two months of continuous cover (unless it is a pre-existing condition, which has a 12-month waiting period). 

We want you to be happy with your cover. If you would like to discuss cover options with one of our health care experts, please call us on 1800 808 690. Or visit peoplecare.com.au/help-me-choose.