Consumers will be slugged with an average 4 per cent rise in private health insurance premiums this year despite major Turnbull government reforms designed to rein in costs.

While the numbers are yet to be finalised, Health Minister Greg Hunt has revealed there is likely to be an average 3.9 per cent rise for policyholders on April 1 this year.

A 3.9 per cent increase would represent the lowest premium increase since 2001 – but would still be nearly twice the rate of general inflation. It would add close to $200 dollars to the average policy a year, and is likely to force more families to drop their cover.

It also means that the government's sweeping changes and cuts to the medical devices sector – announced in October – have so far only delivered a one per cent reduction in premium price rises compared to 2017, which saw an average 4.84 per cent rise.