Customers hit with insurance hikes

Health insurance premium hikes are due to kick in on April 1 ... but some customers got an early surprise.

HEALTH insurance customers have been stung with early premium hikes after a fund incorrectly charged members their regular payments because of the leap year.

Insurer Australian Unity has received numerous complaints from customers today reporting incorrectly charged premium hikes after direct debits were taken from their accounts that were wrongly calculated.

The insurer has blamed the extra day of the year — February 29 — for the error occurring.

Some payments were six per cent higher because of the error.

Health insurers are still yet to announce their annual premium hikes which officially kick in on April 1.

It is expected the hikes will be around five to six per cent and they are expected to be announced within the next couple of weeks.

Already half a million Australians have dropped or downgraded their health insurance premiums in the past year.

Australian Unity customers are being advised to check their direct debit payments.

sophie.elsworth@news.com.au

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