While Australians struggled with the cost-of-living crisis, the three largest private health insurers of Medibank Private, BUPA and NIB made pre-tax profits of $1.7 billion in 2023-24, according to APRA data.
Even with this these huge profits they continued to ask for more. The private health insurance lobby had been pushing for increases in insurance premiums beyond inflation. On 26 February the Minister, Mark Butler, permitted an average premium increase of 3.73%, which will apply from 1 April 2025. The Minister also claimed to have considered the insurers “years of record profits” yet Medibank, BUPA and NIB all received approval for above-average increases of 3.99%, 5.10% and 5.79% respectively.
The profits of Medibank, BUPA and NIB contradict the insurance industry’s claims that “nearly every dollar that comes into health insurance goes back out to hospitals, to doctors, to physiotherapists to dentists”.
Australia’s private health insurance industry is highly concentrated with the top five insurers (Medibank, BUPA, NIB and not-for-profits HCF and HBF) accounting for 79% of all premium income.











