Health insurers have reacted furiously to Opposition Leader Bill Shorten's plan to cap premium price rises, warning of "disastrous" consequences for the entire heath industry and massive cost increases once the freeze ends.

Mr Shorten has announced a Labor government will cap price rises at two per cent for two years, saving an average family $340.

The promise comes after the Turnbull government confirmed last month that premiums would rise another 3.95 per cent this year - the lowest price rise in 17 years but still almost double the general inflation rate. The constant price rises have many people ditching their cover, threatening the industry's viability.

The latest price rise came despite Health Minister Greg Hunt's private health insurance health package, announced late last year.

Mr Shorten says the status-quo cannot continue.