Why does my premium change, if I rarely make claims?

Australia’s private health insurance is based on a community rating system. This means that all customers pay the same premium for the same policy, so that insurers can’t discriminate against them based on health status or claims history. This keeps health insurance fair and accessible for all Australians. 

For example life, auto or home insurances are risk-rated. This means the premium is calculated on the risk associated with a person claiming against their policy. This then allows insurers to refuse a person cover, increase their premiums or lower their benefits if a claim is made.

This is quite different from a community-rated system, where everyone has the right to purchase private health insurance. Health funds cannot refuse to provide you with the coverage you want based on personal circumstances, such as your health or how often you claim. You have the right to renew your policy and the cost of your premium will not increase based on these personal circumstances.