Will the family budget withstand a health insurance premium rise in 2025?

Industry comparison tool Compare the Market has predicted premiums will go up in 2025 due to increasing doctor fees, rising wages of health professionals and increased costs to insurers.

Compare the Market's David Koch said it was "almost certain" premiums would go up again next April, but was unsure what the increase will be.

The average premium increase in 2024 was three per cent after an initial proposal of up to six per cent was denied by regulators.

Bevan Jones from Adelaide, who pays for health insurance with Bupa, said budgeting would be more difficult if his premiums went up again.

He said his family chose to pay for health insurance so his wife could have their baby in a private hospital.

"A price hike in 2025 on our health insurance would make things even tougher than what they currently are with the cost of living crisis," Mr Jones said.

"Especially having a two-year-old daughter and if we ever have another kid in the future, then that's something that we may need to consider as well."

However, Mr Jones said they wouldn't consider cancelling their health insurance yet.

"It's something we need... obviously if it's the difference between putting food on the table or not, then of course, but at the moment it's ok," he said.

Mr Koch urged people to check their specific policy with their health fund.

"While this year's industry average was 3.03%, it's vital to know that the actual premium change was different between health funds and even individual policies within that fund," Mr Koch said.

"This will almost certainly be the case again next year and because it's such a mixed bag, it's really going to be on Australians to understand what their premium adjustment is, whether there's a better deal available and if there are ways to save."

Mr Koch encouraged Australians to not just accept a renewal of their cover but to shop around when their premium increases.

He also said health insurers try to secure new customers all year round with perks, incentives, promotions and offers and these can be used to consumers' advantage.

"At the end of the day, you need to find a policy that offers coverage for services and treatments that are important to you," he said.

"While more comprehensive policies include a wider range of inclusions, they usually do cost more and you could be wasting money if you aren't utilising all the services included."

Australians are urged to check policies with waiting periods, with many health funds recognising time already served.

Mr Koch also recommended paying careful attention to the terms and conditions of policies.

"In particular, keep an eye out for any inclusions and exclusions, waiting periods, benefit limits, excess amounts and more. This information can be found in your health fund's policy brochure or by speaking to a health fund representative on the phone," he said.