- St Lukes’ private health insurance premiums will increase by an average of 4.25 per cent on April 1, 2026.
- St Lukes’ average premium increase is below the industry average of 4.41 per cent, and lower than major competitors Bupa (4.8 per cent) and Medibank (5.1 per cent).
- St Lukes’ 10-year average premium increase (3.42 per cent) is lower than almost every other fund in Australia.
St Lukes keeps premium increases low as it strengthens commitment to Tasmanians’ health
Leading Tasmanian not‑for‑profit health and wellness organisation St Lukes has announced its 2026 premium adjustments, continuing a long‑standing commitment to keeping increases as low as possible while delivering award-winning health cover.
Chief Operating Officer Darren Harris said the organisation remains focused on ensuring its 100,000 members receive value from their private health insurance, particularly as cost‑of‑living pressures and rising healthcare costs affect households across the state.
“For more than 70 years, St Lukes has put Tasmanians first. As a not‑for‑profit, we answer directly to our members, and that means keeping premiums as low as possible while continuing to invest in services that support their health and wellbeing,” Mr Harris said.
“St Lukes is the number one provider of health insurance in Tasmania, and with that comes a responsibility to deliver value, advocate for better health outcomes, and ensure members can access timely care.”
St Lukes members will see an average rate increase of 4.25 per cent this year – below the industry average (4.41 per cent) and lower than the average premium hikes of major competitors, including Bupa (4.8 per cent) and Medibank (5.1 per cent).
Mr Harris said this year’s premium increase reflects challenges facing both the public and private health systems, including the rising cost of providing medical and hospital services – which rose 5 per cent last financial year – and growing demand for services.
“We know Tasmanians are feeling the pressure. That’s why we work hard to keep our premium increases among the lowest in the country, while maintaining the long‑term sustainability of the fund,” he said.
“We also recognise the importance of a financially sustainable private hospital sector – particularly in a regional state like Tasmania where access to acute services is already limited.
“The Federal Minister for Health and Ageing reinforced this in this year’s premium round, requesting that private health insurers consider the financial viability of the private hospital sector and the ongoing cost increases it faces.
“St Lukes has balanced this responsibility by promoting alternative models of care that are evolving to meet customer needs and expectations.”
With recent hospital closures, service changes and uncertainty around providers like Healthscope, Mr Harris said St Lukes has been working closely with hospitals to help keep services available for Tasmanians, support hospital sustainability, and improve the breadth and quality of care.
“We’ve also reached new agreements with key hospital providers that include higher funding increases to help keep the sector strong and sustainable,” he said.
St Lukes’ approach is guided by its vision to make Tasmania the healthiest island on the planet – a goal that has seen the organisation expand beyond traditional health insurance to deliver services that support prevention, early intervention and community wellbeing.
This includes St Lukes Dental practices, chronic disease management programs, health screenings, prevention and education events and its Health Navigation service, which connects members with personalised guidance and support.
“Value isn’t just about cost – it’s about having cover that genuinely supports members’ health and gives them confidence they’re protected when they need it. At the same time, we know how important it is to keep premiums within reach for Tasmanians,” Mr Harris said.
“As we continue to grow our role in Tasmania’s health ecosystem, we remain committed to providing affordable, high‑quality cover and reinvesting back for the benefit of the members we serve.”
St Lukes hospital cover has been recognised in Tasmania by CANSTAR for its outstanding value for the past three years, acknowledging its value for money that enables consumers to find the right balance of cost and coverage to suit their needs. This includes the delivery of affordable Gold products, along with a full suite of hospital and general treatment products that meet the life stage needs of members.
St Lukes is finalising its rates for individual policies and will communicate members’ new premiums as calculations are completed. Changes will take effect from April 1.
ENDS