The NIB Holdings Ltd (ASX: NHF) share price is down 2.47% to $6.71 on Friday.
A scathing new report shows Australians are paying more for private health insurance policies but receiving fewer benefits.
The key benefits of private health insurance include help with costs, the ability to choose your doctor, shorter waiting periods for elective surgery, and a tax break for higher income earners, as having insurance means they don't have to pay the Medicare surcharge.
The Australian Medical Association (AMA) released its 2025 Private Health Insurance Report Card today.
The report shows consumers are feeling increasingly dissatisfied with the value for money they're getting while insurers post big profits.
For FY25, NIB reported higher revenue, lower underlying group profit, and higher net profit after tax (NPAT).
Revenue was $3.6 billion in FY25, up from $3.3 billion in FY24. Group underlying operating profit was $239.2 million, down from $257.5 million in FY24, and NPAT was $198.6 million, up 9.4% from $181.6 million in FY24.
What did the AMA say about private health insurance?
AMA President Dr Danielle McMullen said the report "reveals a system increasingly failing to deliver value for money".
Dr McMullen said:
Premiums have risen sharply, outpacing inflation, wage growth, and Medicare indexation — while coverage has narrowed.
Sixty-eight per cent of hospital policies now contain exclusions, meaning many Australians are paying more, but are covered for less.
The report found that Australian consumers were dropping gold level policies in favour of cheaper silver and bronze packages.
Since March 2020, the number of gold health insurance policies has fallen by 360,000 while the overall number of policies has risen 640,000.
Dr McMullen commented:
The tiered product system introduced in 2020 — basic, bronze, silver, and gold — was designed to simplify choices but has instead created confusion and contributed to underinsurance.
Gold-tier policies, which provide the most comprehensive coverage, are particularly susceptible to phoenixing — a term used when insurers close an existing policy and replace it with a nearly identical one at a higher price — a practice that has become increasingly common.
Key dates for NIB shares investors in 2026
Looking ahead to 2026, here are the important dates for NIB shares investors to note.
NIB will announce its FY26 half-year results and interim dividend on 23 February.
The ex-dividend date for the interim NIB dividend will be 5 March.
If you'd like NIB to use your dividends to reinvest in more shares, you'll need to enrol in the dividend reinvestment plan (DRP) by 9 March.
NIB shareholders will receive their dividends on 8 April.
The private health insurer will announce its FY26 full-year results and final dividend on 24 August.
The ex-dividend date for the final NIB dividend will be 3 September.
The DRP deadline will be 7 September.
NIB will pay its shareholders on 7 October.
The insurer will hold its annual general meeting on 11 November.
