News: NIB raises premiums by 6.55%

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Health care costs have risen with both NIB Holdings Limited (ASX:NHF) and Medibank Private (ASX:MPL) informing the market of increasing costs. 
 

NIB says that rising costs and increasing claims have forced the insurer to increase premiums by an average of 6.55 per cent across its products. 
 

NIB CEO Mark Fitzgibbon said the company has seen a 12 per cent lift in payouts during 2014 placing pressure on claims costs for all health funds. 
 

Medibank Private also announced approval from the Federal Government to raise its premiums by 6.59 per cent across the board.  
 

NIB Holdings reported a net profit of $41.1 million for the half year to 31 December 2014.