nib's 2024 Health Insurance Premium Increase Announcement

nib holdings limited (nib) (ASX: $NHF) has announced its 2024 health insurance premiums will rise by an average of 4.10%, effective 1 April 2024. The previous two increases, at 2.72% (2023) and 2.66% (2022), were the second lowest and lowest in 20 years.

Executive Commentary on Premium Increase

The increase reflects the return of hospital and ancillary treatment post COVID-19, and a rise in health and medical treatment costs. Claims inflation has moved back to long-term trends, and it's crucial that insurers are able to price for this. Throughout the pandemic, annual premium increases were kept low, acknowledging lower treatment and claims volumes. nib also supported members with an estimated $181 million, principally in cash rebates and premium deferrals. The company is focused on maintaining affordability while addressing the growing healthcare spending driven by an ageing population, the rise of chronic conditions, and the cost of new technologies. nib aims to provide members with more value for their premiums through health management programs and a range of new measures designed to help reduce out-of-pocket expenses.

Summary of 2024 Health Insurance Premium Rise

nib (ASX: $NHF) has announced a 4.10% average increase in health insurance premiums effective from April 1, 2024. The company's CEO and Managing Director, Mark Fitzgibbon, highlighted the reasons behind the increase, attributing it to the return of hospital and ancillary treatment post COVID-19, and a rise in health and medical treatment costs. Despite acknowledging the strain on household budgets, nib aims to maintain affordability while addressing the growing healthcare spending. The company's ambition is to be as much a health management company as a health insurance company, offering health management programs and a range of new measures to provide members with more value for their premiums. Federal Health Minister Mark Butler has approved the increases across the industry, and the announcement has been authorised for release by nib Company Secretary, Roslyn Toms.