As part of the premium rise on April 1, those with private health insurance in Canberra will pay on average $177 more.

The average premium increase across the country was 3.95 per cent, which Health Minister Greg Hunt said was the lowest increase since 2001.

While not all policyholders can expect to pay $177 more for their insurance, the increase is based on current policy pricing for 2017-18.

The increase comes as new figures show ACT residents have some of the highest health insurance costs in the country.

Analysis conducted by comparison website finder.com.au revealed Canberra had the fourth-highest cost out of all states and territories.

On average, a Canberran would expect to pay $2071 for a single policy, while a family policy would set consumers back $4482.

The analysis showed both ACT and NSW residents on average paid the same amount for their respective policies.

Victorians were found to pay the most, at $2206 for a single and $4786 for a family policy.

Queensland had the second highest on the list, at $2151 and $4660, with Tasmania rounding out the top three, coming in at $2125 and $4576.

Those living in the Northern Territory had the lowest costs for their health insurance, with policies on average costing $1561 and $3319.

Finder's insurance expert Bessie Hassan said there were many factors involved with the range of prices for health insurance.

"States with older populations typically see more expensive cover on average," she said.

"Other factors that can influence price differences include hospital costs and even discrepancies between gap payments from specialists.

"Health insurance pricing can vary across Australia for a few reasons, but vastly because of the differences between taxes and regulation between states."

The recent price increase also coincides with the release this week of a national survey conducted by the Consumers Health Forum of Australia.

The survey found out-of-pocket expenses for medical bills exceeding $10,000 have become commonplace for patients with breast cancer or chronic conditions, despite patients having access to private health insurance.

While this year's premium increase has been one of the lowest in recent years, Tom Godfrey from consumer advocate group Choice said the rise was at twice the rate of inflation.

"This latest increase will mean private health insurance customers have been hit with a 70 per cent cumulative price hike since 2008, forcing many to downgrade or drop their private health insurance," he said.

"Notwithstanding the barrage of fear-laden advertising from health insurers, private cover is unaffordable and often unnecessary for many customers."

Labor health spokeswoman Catherine King said the insurance increase would still come as a large cost to consumers.

"The private health insurance increase sees Australians paying $1 billion more for the same private health insurance product," she said.

"That's $1 billion coming out of the pockets of Australians and going into the pockets of private health insurers."