More than 15 million Australians are facing the biggest increase to private health insurance premiums in almost a decade, with an above-inflation hike set to hit households from April.

The federal government has approved a 4.41 per cent increase to premiums, leaving families and individuals scrambling to review their cover options.

A family with an average-priced gold hospital policy could pay $330 more annually under the new rates with the possibility to rise as much as 12 per cent.

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Those with silver cover face an increase of $166, while bronze policies are expected to rise by $120.

Individuals will be stung between $59 and $167 extra a year.

But the pain doesn’t stop there, the four biggest health insurers are increasing premiums even further than the government-approved average.

NIB is leading the charge with the highest increase at 5.47 per cent.

Private health insurance premiums to rise 4.41 per cent from April. Credit: 7NEWS

Canstar has warned some gold hospital policies could rise by as much as 12 per cent.

Health Minister Mark Butler has defended the increases, saying they represent “the lowest possible increases that are consistent with a viable private hospital sector.”

Consumer experts are urging Australians to take action before the April deadline.

Options to save include reviewing your level of cover and extras, considering switching providers, or pre-paying for the year before the hike kicks in.