Australian Private Health Insurance Sees Modest Growth Amid Public System Strain

Data from the Australian Prudential Regulation Authority (APRA) reveals a modest increase in private health insurance (PHI) participation, with hospital policies rising by 2.2% and hospital benefits up 5.7% year-over-year. Despite expectations for slower growth into fiscal year 2026, the sector continues to benefit from Australia's growing population and an overstretched public health system, which encourages Australians to maintain PHI coverage. Out-of-pocket costs for hospital treatments increased by 10.8% and ancillary treatments by 5.4%, with higher payments expected to persist. This trend is likely influenced by long waitlists for public system appointments and elective procedures, reinforcing the ongoing value placed on PHI.