Ankit Sharma and expectant wife Mini plan to cancel their cover as a result of the higher costs. Picture: Tony Gough

HEALTH funds have been accused of hiding price rises of as much as 18 per cent.

While membership costs rose by an average of 4.8 per cent from yesterday, new research for News Corp Australia reveals budget blows of up to four times that size, setting a family back $750 a year before rebates.

And many households have no idea just how hard their finances are about to be hit because of the shifty way some funds are now fulfilling their obligation to notify customers.

Instead of simply sending a letter explaining the increase, providers are instead using emails that can end up in a junk folder if a member has a higher level of protection on their email account.

It is increasingly common for insurers to add yet another barrier by requiring a membership number and password to be entered before the size of the price rise is revealed.

This impediment further reduces the chances a policyholder will know how much extra they are up for.

Those who have agreed to direct debit in return for a small price reduction may only find out when they next review a credit card statement.

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Francesca Barbieri with son Leonardo and friend Virginia Piccone with daughter Viola. Both women have private health insurance that will be raised this weekend. Picture: News CorpSource:News Corp Australia

“This is a bad look from health funds concerned as it leaves the impression, rightly or wrongly, that they are trying to conceal the increase in premiums,” Consumers Health Forum CEO Leanne Wells told News Corp Australia.

“The rules require that health funds notify their members of premium adjustments,” Ms Wells said. “Putting the figure behind the password protection wall is a troubling development and will only add to the community’s rising frustration with and suspicions about, health funds.”

Comparison service iSelect’s health insurance expert Laura Crowden said this year her fund had for the first time added a requirement that she enter her membership number and password before the premium change was disclosed.

The other concern with the “strong trend towards email”, Ms Crowden said, was that it “results in many customers not opening or having it go through to junk”.

Private Healthcare Australia said “all insurers go beyond the requirements of legislation and the code of conduct to communicate coverage and benefits to their members” and that there had been a general shift in society to electronic communication.

Analysis by iSelect for News Corp Australia shows some members of one major fund are being whacked with an increase of 17.6 per cent. Customers of another cover provider are being walloped with a 16 per cent rise. More again at a third are now being told to pay 12 per cent more.

Dean Ward and his 12-year-son Rin will also be impacted by the changes. Picture: News CorpSource:News Corp Australia

The average cost of protection is up 70 per cent over the past decade — three times the general rate of inflation.

That has proven more than many can bear: in the past two years about 400,000 people have had to downgrade their insurance.

Federal Health Minister Greg Hunt said yesterday: “People should take the opportunity to shop around and put even more pressure private health insurers to get them the best deal at the lowest possible price.”

And, for the first time in 15 years, overall private health coverage is falling — to 46.6 per cent from 47.4 per cent of the population at the end of 2014.

In response to the big increases, consumer network One Big Switch has launched a bid to extract a group discount. It is hoping to save families more than $400.

One Big Switch campaign director Joel Gibson said in the past two years it had unlocked special offers valued at $300 and $400 for families.

“This year we want to take it to the next level and see if we can achieve a special offer worth even more to encourage people to shop around,” Mr Gibson said.

To join the Big Health Insurance Switch go to www.onebigswitch.com.au

There is no obligation to take up any offer. This masthead’s publisher News Corp Australia and One Big Switch will earn a commission from any accepted deals. News Corp Australia is a shareholder of One Big Switch.

Originally published as Sneaky price hikes you’re not warned about