Medibank and NIB shares soar after permission to increase health insurance premiums

John Isner gets medical attention in between games at the 2016 Australian Open. Michael Dodge/Getty Images

Medibank and NIB, the two ASX-listed health insurers, have been given federal government approval to lift their premiums to keep pace with rising medical costs.

Shares in both jumped on the news.

Medibank, which now can increase premiums by an average of 5.64% from April 1, was trading 4.6% higher at $2.70.

Shares in NIB, with a 5.55% premium increase, were almost 4% higher at $3.77.

The industry average approved rise is 5.59%.

The highest increase was 8.95% at CUA Health Fund and the lowest 3.76% at Doctor’s Health Fund.

The full list of funds and premium increases are HERE.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at