The Gratten Institute has released a report claiming the federal government and Health industry leaders need to develop an urgent rescue plan for the private health industry.
The report says private health insurance premiums have been rising faster than wages and inflation. This causes younger, healthier people to drop their insurance, leading to the insurance risk pool getting worse and premiums increasing more as a result.
The report also suggested that private health operators charge exorbitant fees for procedures. It called for the Minister of Health to reject premium-rise applications from insurers that don’t provide good value for money.