In 2002 private health insurance premiums increased by 6.9 per cent, the first increase in premiums since the introduction of a number of incentives designed to increase private health insurance membership and constrain premium increases. In response to the continued growth in premiums the Commonwealth government announced a series of changes in the way private health insurance premiums are regulated. These changes, discussed in detail in this research note, seek to de-politicise the process of increasing premiums and minimise the administrative burden on private health insurance funds.