As newly-minted Health Minister Greg Hunt prepares to make his first major announcement, a likely 5 per cent rise to the price of premiums – coming on top of cumulative increases of 28 per cent since 2012 – consumer health advocates said customers would be "irked" to learn that insurance bosses have in some cases doubled their multi-million dollar remuneration packages over the same period.

In pressing government for another significant rise in premiums, insurers have complained that health cost pressures have pushed the industry to a "tipping point" despite families now paying an average of more than $4000 a year for cover.

But at Medibank, for example, annual reports show the total pay of departed chief executive George Savvides climbed from $1.4 million in 2014 to $2.4 million in 2016, the year he left the insurer post its public float.

His successor, Craig Drummond, a former National Australia Bank executive, has signed on for a base salary of $1.5 million with incentives that could net him a further $4.5 million.

Insiders say he is very unlikely to qualify for the full bonus package as he embarks on transforming Medibank after a number of years of declining market share.

At NIB, chief executive Mark Fitzgibbon's total pay packet increased by 95 per cent between 2014 and 2016, powered by a $333,000 share package that vested last year.

His salary and bonuses rose from $893,000 to $1,746,000 in the period.

Market leader BUPA, which is owned in the UK, does not publicly disclose the pay of its Australian chief executive Richard Bowden and HCF, which rounds out the big four insurers, only provides a pay pool for its most senior eight executives – roughly $7 million.

Privately, insurers told Fairfax Media that remuneration was based on ASX benchmarks, set at board level and endorsed by shareholders.

Medibank would not comment directly on Mr Drummond's pay but a spokeswoman said its insurance premiums "reflect the balancing act of meeting the rising costs of healthcare in Australia and ensuring that our products remain affordable for customers".

An NIB spokesman said: "Mr Fitzgibbon's remuneration reflects the nature and responsibility of his role as managing director of an ASX-listed company that operates in a national and increasingly global market. Mr Fitzgibbon's remuneration is assessed by the nib Board annually, independently benchmarked by specialist remuneration consultants and aligned with companies of similar size and industry."

But the Consumers Health Forum of Australia said 13.5 million private health customers would be irked to know that executives had benefited from unrestrained increases when consumers had been gouged to the point that many are walking away from health insurance.

"I think it does rankle with consumers and should be treated as another red flag for insurers to know that people are questioning the value of their product," said CHFA chief executive Leanne Wells.

"People want a reason to take out cover, they want to protect their families and they see it as an essential but it has become a very expensive essential."

Since 2014, the federal government has signed off on industry-wide premium rises of 6.2 per cent, 6.18 per cent and 5.59 per cent.

Health industry bosses have acknowledged that the public has run out of patience with steep rises and have mounted campaigns to rein in fixed costs like devices on the prostheses list.

But there has also been evidence of health funds taking an axe to the benefits they offer, with the Australian Prudential Regulation Authority in a report finding evidence of a 6 per cent decline in payouts for dental, chiropractic, physiotherapy and optical extras.

Pregnancy and spinal and brain surgery have been excluded from mid-range cover in many cases.

Despite the dire time, net profit after tax for the industry remained at $1.2 billion in the March quarters from 2015 to 2016.

"With average premiums rising close to 50 per cent since 2009 and value being eroded in the form of junk policies, there is an increased responsibility on health insurers to justify their bloated bottom lines."

Consumer group Choice also noted frustration in the market place.

"As consumers stare down the barrel of another average premium increase of more than 5 per cent, they have every reason to ask where the money is going," said director of campaigns Matt Levey.

"The industry's profits are driven by legislated carrots and sticks including the private health insurance rebate, the Medicare Levy Surcharge and the Lifetime Health Cover loading. Given this privileged position, Australians have the right to expect insurers operate efficiently, providing genuine value to consumers, with products that are easy to understand and navigate."

"Unfortunately health insurance is the most complex market for Australians to navigate, increasingly costly, and providing questionable cover to many in the form of junk insurance."