Sharp jump in health insurance rates will force families to ‘cut down’

Families are protesting the 6.18 percent rise in private health insurance premiums, with many fearing costs will now be unaffordable.

The price rise, approved by the Federal Government, is far above the annual inflation rate of less than two percent.

It is the second-highest rise since last year's, which was 6.2 percent.

It will cost the average family an extra $16 a month, or $192 a year.

The government has said consumers should shop around.

Single mother Caillin, 25, says she will have to cut costs elsewhere.

“It means cutting down on some things, shopping at cheaper places,” she said.

The AMA believes the sharp rise will leave private health customers with two choices – either reduce the cover people have, or land on the public hospital system.

One way people can beat the rise is to lock in their current rate by paying a year in advance before April 1.

Some funds will offer a discount if customers do so.