Bupa announces approved 2025 average premium change

Bupa’s 2025 premium increase is well below the 8.3% increase in claims paid out to customers in 2024.

Bupa Health Insurance Acting Managing Director, Kate Williams, said Bupa had been working hard to strike the right balance between continuing to provide customers with high-value health cover and affordable premiums, with rising health costs and the need to support the sustainability of private hospitals. 

“We know many Australians are currently doing it tough and that’s why we’ve worked to keep our 2025 premium change as low as we can this year,” Ms Williams said.

“The reality is we’re operating in an inflationary environment due to rising wages in healthcare, increasing medical device prices, and escalating hospital costs. The new premium reflects these factors, and the significant uncertainty in the private health sector, along with projected claims growth from increased demand for medical care, driven by Australia’s ageing population and the rise in chronic illnesses.”

Bupa paid out $6.3 billion in hospital and extras benefits to our Australian customers in 2024 – up from $5.8 billion the previous year.

Ms Williams said Bupa’s focus continues to be keeping private health insurance affordable, relevant, and sustainable to ensure we can continue to support our customers’ health and wellbeing now, and into the future.

“We all have a role to play in supporting a sustainable and affordable private health system,” she said.

“We continue to work hard to enhance efficiencies across our business to help keep costs down while continuing to deliver greater value to our members and address their evolving needs.

“We’ve been investing in key customer initiatives to help take pressure off everyday healthcare costs and improve access to high-quality care. This includes strengthening Bupa’s digital platform Blua with 24/7 virtual doctor consultations and a door-to-door chemist delivery service, providing gap-free dental fillings and check-ups to eligible members through our Members First Ultimate Network, offering customers additional value on everyday costs through our Life Rewards program and increasing their access to clinical mental health program This Way Up.                   

“We also recognise the critical role hospitals play in Australia's healthcare system and are committed to continue working collaboratively with them to deliver modern, high-quality healthcare in settings that best meet the needs of our customers.”

Bupa continues to have one of the largest hospital networks in Australia, and in 2024, Bupa signed agreements with Ramsay Health Care, St Vincent’s Health Australia, Mater Health, and Healthe Care and most recently signed an in-principle agreement with Healthscope focused on keeping costs low for our customers and supporting new, innovative models of care.

“At a time when uninsured Australians are finding it more difficult to access care when and where they need it most, private health insurance continues to play a critical role in supporting the sustainability of our mixed health system by taking pressure off public hospitals and giving Australians greater choice around their healthcare,” Ms Williams said.

She said Bupa will shortly be in touch directly with customers about their individual premium adjustments, which can vary depending on the type of cover and what state they live in.

“We know health and care needs can change and we encourage our customers to get in contact with us by visiting one of our stores, reaching out to us on WhatsApp, or contacting our contact centre to ensure they’re getting the most value from their health insurance and are on the best policy to suit their budget and individual needs,” Ms Williams said.

Support options are also available for customers suffering from financial hardship to ensure our customers can continue to access the healthcare services they need.