Health insurance premiums to rise by 6-7 per cent

This year health premiums might increase by an estimated 6-7 per cent. Which means for a family it would be $195.

According to health minister Nicola Roxon good news is not in store for customers as next week 2010 private health insurance premium rises.

"We've been able to go through a negotiation process of saying no, that's too high. But I do, unfortunately, have to say to the public there's never really good news in these," she said.

Proposed fee rises by insurers after a 6.02 per cent rise last year were examined by the Government.

Several health funds were sent back to drawing boards that needed reassessment, it was reported. As medical technology improves, the industry has warned of tough conditions for insurers as they have been hit with rising costs.

In the past financial year a 10 per cent increase in payouts by the funds was reported by the sector's independent regulator.

Australian Health Insurance Association chief executive Michael Armitage said, “Premium rises were always kept to a minimum when compared to rising costs.”

According to Roxon in the last five years premiums had risen by an average of 6.63 per cent. Higher costs would hit higher income earners if it manages to get the measure through.