Private health insurance premiums are rising by an average of 2.74 per cent, the second price hike in just six months for many policyholders.
The increase takes effect from April 1, and is expected to cost the average family about $127 a year, and singles about $60 a year.
The consumer group Choice says over the past 10 years, premiums have gone up by an average of 57 per cent, against inflation over the period of 20 per cent.
It says the biggest insurers, including Bupa, NIB and Medibank, have all imposed bigger than usual premium hikes.
Kate Bower from Choice has warned people who are part of "closed" policies that do not accept new policyholders, to look out for big premium hikes.
"We often see closed policies have even bigger increases because the insurers want you to move out of those policies," she told AAP.
The fee increase comes at the same time as a yearly reduction in private health government rebates.
People aged under 65 will still get about 25 per cent of their premiums back thanks to the rebates, but wealthy and older policyholders may receive different amounts.
The rebate level was frozen for 12 months at the start of 2020 due to the pandemic.
The industry group Private Healthcare Australia says the April 1 premium increase is the lowest in 20 years, and has been driven by the high cost of medical devices.
"It is disappointing that there has to be an increase in a year when so many Australians are doing it tough," PHA chief executive Dr Rachel David said in a statement.
The government sets the prices for medical devices that are covered by private health funds, with more than 11000 devices listed.
PHA says Australians pay about 30 per cent more for medical devices than patients in countries such as New Zealand and the UK.
It said while insurers' profits were down significantly in 2020, their spending on medical devices still increased.