Health insurance company Medibank Private (ASX:MPL) has announced a 3.88 per cent increase in its average premiums, which is the lowest level in 17 years for the insurer and below the industry average.
This comes after the Minister of Health Greg Hunt announced the lowest health insurance premiums rise since 2001 of 3.95 per cent today.
The rate spreads across all Medibank and ahm health insurance products from 1 April 2018.
This results in a $50 million savings, in addition to the insurer’s efforts to reduce its costs.
Medibank’s CEO Craig Drummond commented that private health costs have increased by around 5 per cent over the past 12 months, mostly driven by medical inflation and more people seeking treatments.
Shares in Medibank Private (ASX:MPL) are trading 1.37 per cent higher at $3.33.