In a statement, the minister said consumers would be $125 million better off, and the average family with hospital and general health cover would save $166 a year, thanks to her intervention. Medibank has been taken to the Federal Court by the ACCC. Credit:Glenn Hunt However, Ms Ley refused to calculate how much extra the average family would pay due to the premium increase. "Every health insurer is different so it's very difficult to say," she told reporters. Under the legislation, private health insurers must apply to the health minister for approval of their premium changes. The increases usually apply from April 1. The smallest increase in recent years was 5.06 per cent in 2012. Last year the government approved an average premium hike of 6.18 per cent across the industry. Asked why insurers were not asked to resubmit their claims in previous years, Ms Ley said the government had been considering other health reforms.

"While you may think it's useful to look back, I actually think it's useful to look forward," she said. Premium increases vary depending on the insurer. Of the largest providers, Medibank will this year lift its rate by 5.64 per cent, BUPA by 5.69 per cent and NIB by 5.5 per cent. The smallest hike, 3.76 per cent, was offered by Doctors Health Fund, which insures healthcare professionals. The federal government is concerned about consumers abandoning private health cover and the pressure that puts on the public health system. About 500,000 Australians dropped or downgraded their private health insurance policies in the past financial year. "We cannot load up the public system with patients who would effectively describe themselves as private," Ms Ley has previously said. But Labor health spokeswoman Catherine King noted the 2016 premium increase was still three times the current rate of inflation and would add $200 a year to a family's health insurance bill.

"This again highlights the Liberal Party's abject failure to protect health fund members after waving through the two highest average annual increases in a decade in their first two years," Ms King said. Ms Ley insisted it was "not that useful" to compare premium hikes to the general inflation rate because the rate of health inflation was closer to 8 per cent. The announcement comes as the government continues its review of the $19 billion private health insurance sector, with concerns about increasing changes to policies. It also continues to investigate private insurers' claims medical devices such as hip replacements, heart valves and pacemakers are too expensive, partially contributing to premium rises. In a statement, the health department said it had been "overwhelmed" by the 40,000 Australians who responded to a government survey on private health insurance. The majority of consumers raised concerns about the affordability of their premiums and questioned their insurance policy's value for money.

Ms Ley said redressing these concerns had partly motivated her January intervention. The outcome demonstrated "good faith" on the part of insurers, she said. Private Healthcare Australia said the low increase demonstrated the industry's willingness to keep premiums as low as possible. Chief executive Dr Rachel David said Australian healthcare was becoming more expensive due to the ageing population, growth in chronic disease, medical technology advances and providers' higher charges. Last month, Australia's biggest health fund Medibank Private reported a first-half profit of $227.6 million - an increase of 58 per cent. with Jane Lee

Average insurance premium increase ACA Health Benefits Fund Ltd 6.19%

Australian Unity Health Ltd 5.05%

BUPA Australia Pty Ltd 5.69%

CBHS Health Fund Ltd 5.92%

Cessnock District Health Benefits Fund Ltd 6.19%

CUA Health Fund Ltd 8.95%

Defence Health Ltd 5.48%

Doctor's Health Fund Pty Ltd, The 3.76%

GMHBA Ltd 5.44%

Grand United Corporate Health Ltd 4.26%

HBF Health Ltd 4.94%

Health Care Insurance Ltd 6.90%

Health Insurance Fund of Australia Ltd 6.55%

Health Partners Ltd 7.14%

Health.com.au Pty Ltd 8.81%

Hospitals Contribution Fund of Australia Ltd, The 5.42%

Latrobe Health Services Ltd 5.52%

Lysaght Peoplecare Ltd 4.38%

Medibank Private Ltd 5.64%

Mildura District Hospital Fund Ltd 6.74%

National Health Benefits Australia Pty Ltd 5.28%

Navy Health Ltd 5.50%

NIB Health Funds Ltd 5.55%

Phoenix Health Fund Ltd 5.72%

Police Health Ltd 4.81%

Queensland Country Health Fund Ltd 4.91%

Queensland Teachers' Union Health Fund Ltd 7.15%

Railway & Transport Health Fund Ltd 5.61%

Reserve Bank Health Society Ltd 5.37%

St Luke's Medical & Hospital Benefits Association Ltd 5.89%

Teachers Federation Health Ltd 4.97%

Transport Health Pty Ltd 6.49%

Westfund Ltd 5.94% Industry weighted average 5.59% Follow us on Twitter