National Seniors chief executive Michael O'Neill said the rise came only a day after the government's carbon tax announcement sparked fears amongst retirees of a significant jump in everyday living costs.

"Pensioners and self funded retirees are already grappling with rising food, energy and health costs. Today's announcement is just another assault on their way of life," Mr O'Neill said.

"Policy-makers must understand that retirees, many of whom are still recovering from the GFC, have very little capacity to adjust to these increases."

The increase starts April 1.

For more information, go online to http://health.gov.au/internet/mai n/publishing.nsf/ Content/privatehealth-summary-pre miumincreases.