Australia's biggest insurer, Medibank Private brought bad news for all the families seeking health insurance in Australia. Health minister for Australia, Nicola Roxon said that half the funds were demanded by her, to resubmit the applications, which eventually would save money for 8.5 million of its members as they would not be included in this hike.

Medibank Private hiked the premiums by 5.74 percent. Comparatively, GMHBS who is a small time operator lifted the rates by a whopping 7 percent. This is the election year for the Australians. The family budgets have been hit by just below 6.02% as compared to last year.

On an average, families will now have to pay 150 dollars to 200 dollars per year as premium for private health cover. The premiums have jumped by 5.78 percent.

Each year the health funds submit their request to the health minister who further approves or disapproves the requests. Private insurers raised their payouts to 11 billion dollars which is up by 9.3 percent. The government will try its best to minimize the burden on the citizens.