"People are now paying more for health care than ever before," she said.

"It would seem to me unjustified. Household budgets are already under enormous pressure."

Ms King's comments came after health insurance fund companies put a proposal before the Federal Government asking it to approve increases of between five and seven per cent from next April - the fifth successive rise at double

the inflation rate.

The insurance industry has defended the expected increases, stating health costs were rising steadily and premiums had to reflect the price hikes.

But Ms King said the Federal Government's health policy had failed.

"The government promised when it brought in the 30 per cent rebate with the lifetime guarantee that this would make premiums cheaper," she said.

The seven per cent proposal was just an average figure, she said.

"I had cases last year of people whose health insurance premiums rose by 17 per cent," she added.

Australian Health Insurance Association chief executive Michael Armitage said the premium price rise was warranted.

"Everybody knows that the technology that is available for sick people today is 20 times better than it was not very long ago and it is more expensive," he said.

"So if people want to be covered, they sort of, grudgingly I think, expect that the private health insurance premiums will go up, recognising that the cost is continually rising."

Dr Armitage said the cost rises reflected a worldwide trend of healthcare inflation running at twice the rate of normal inflation.

The process for approving premium rises was carefully scrutinised, he said, with the government and the industry oversight body, the Private Health Insurance Administration Council, making sure premium rises were not extreme.

Dr Armitage said there was unlikely to be a big impact on membership levels as a result of the premium rises, with more than 10 million Australians currently holding some form of health insurance cover.