Subcategory Breakdown
Annual price movements within the ABS Health CPI group.
Source: ABS CPI Health group subcategories, Jan 2026. Pharmaceutical fall reflects PBS co-payment reduction from Jan 2026.
Health CPI Trend
Annual % change over 12 months.
Your Annual Healthcare Cost
Private health insurance, GP gap fees, dental, specialists and prescriptions — the full out-of-pocket picture, including the April 2026 premium increase impact.
Healthcare Cost Calculator
Total out-of-pocket health spend with 2026 PHI premium impact — live.
PBS co-payment reduced $31.60 → $25.00 on 1 Jan 2026. PHI gov rebate tiers vary by income and age. Not medical or financial advice.
What Drives Health Costs
Private health insurance premiums rose 4.41% on average from 1 April 2026 — the largest increase since 2017 and above the headline CPI rate of 3.8%. Gold-tier hospital policies at the major funds (Medibank +5.1%, NIB +5.47%) increased well above the industry average. Families on combined hospital and extras policies are paying around $4,908 per year, with an additional $216 added by the 2026 round.
Medical and hospital services rose +4.3% YoY, driven by higher specialist fees and private hospital accommodation charges. The private hospital sector has been under significant cost pressure from wages, energy, and supply chain costs — pressures that are being passed through to patients in the form of larger gap fees.
Pharmaceutical products fell 1.3% following the federal government's decision to reduce the PBS general co-payment from $31.60 to $25.00 on 1 January 2026. This is one of the few genuine household cost reductions in the current environment and provides a small but meaningful offset to other health cost increases.
Dental costs rose +3.8%, continuing a multi-year trend. The Child Dental Benefits Schedule provides some relief for families with children but adult dental care remains fully out-of-pocket for most Australians without extras cover.