Federal Health Minister Sussan Ley will decide by April 1 whether to approve a request by private health insurers to increase premiums for 2015 by as much as 7 per cent – three times the rate of inflation.

‘‘This is going to be the largest increase in premiums that has ever occurred,’’ Mr Jones said.

‘‘It’s just another price increase, another cost burden on families who already pay some of the highest out-of-pocket health costs in the world.

‘‘It’s on top of what the federal government’s trying to do in introducing new costs and charges on the Medicare system, the GP tax in particular.’’

Prime Minister Tony Abbott on Thursday said the government ‘‘almost never’’ interfered with annual premium rises, indicating the request would likely be granted. 

‘‘In the end this is a commercial decision,’’ Mr Abbott said. ‘‘It is up to the market to set the price.’’

However Mr Jones said the government had a responsibility to scrutinise what the health funds were proposing to ensure that premiums hikes were fair.

‘‘We are providing a rebate which subsidises the private health insurance industry so they also have a responsibility to government to ensure that they are not inflating the premium increases above what they absolutely need to be,’’ he said.

‘‘That’s one of our concerns with the privatisation of Medibank - the largest player in the market. A portion of their premiums is diverted to pay dividends for shareholders so a portion of the increases they’re asking for will go to those dividends.

‘‘At a time when there’s a real squeeze on household incomes and medical costs are going up, people have got to ask ‘is this fair?’.’’

Cunningham MP Sharon Bird said it was vital to make sure that private health insurance was affordable.

‘‘Under Tony Abbott we have seen premium rates soar and this will further discourage people from accessing health services,’’ she said.

Last year, the government approved an average premium increase of 6.2 per cent.

However, Ms Ley said it would be premature to speculate on 2015 premiums until an independent industry regulator had assessed the insurers’ claims.