Medibank (ASX:MPL) is set to increase health insurance premiums by an average of 3.3 per cent next year, the lowest average increase in 18 years.
Private health funds across Australia have today received approval from the Federal Minister for Health, Greg Hunt for changes to health insurance premiums.
Mr Hunt has today hailed the changes to premiums as the smallest increase since 2001.
Medibank will also adopt voluntary discounts for 18 to 29 year old on hospital polices, effectively reducing its average premium increase to 3.09 per cent.
The reforms are designed to make private health insurance more affordable and easier to understand.
Shares in Medibank Private (ASX:MPL) are trading 2.1 per cent higher at $2.41.