Australia's largest health insurance provider, Medibank Private, is poised for a revenue boost before a potential privatisation after being given the green light to lift premiums 6.5 per cent next year.

On Monday, Health Minister Peter Dutton announced the approval of across-the-board private health insurance premium rises. All 34 health insurers had applied to increase their fees, Mr Dutton said.

Rates will increase by an average of 6.2 per cent, with the changes taking effect from April 1, 2014. The rises compare with the inflation rate, which currently sits at 2.2 per cent.

Medibank, which has been slated for sale by the Coalition government, secured a slightly bigger premium rise than many of its rivals. In November, Finance Minister Mathias Cormann appointed several advisers, including Ernst & Young, to compile a scoping study to give the government recommendations over all aspects of the proposed sale of Medibank, which is tipped to raise more than $4 billion.

Opponents of privatisation claim a sale would increase premiums, while supporters argue that the insurer has been run as a commercial business for some time. Last financial year, the insurer posted a profit of $232.7 million - almost double the $126.6 million of a year earlier.