Younger consumers are spending more on private hospital insurance, but getting less value for their money. The industry faces major issues, as costs for older people rise and younger people leave. This report lays out a transition to make private hospital care better value for both consumers and taxpayers, and viable for the long term.

Private health insurance premiums could be cut by up to 10 per cent if private hospitals were made more efficient and stopped over-servicing, according to this Grattan Institute report. The report also highlights the additional costs generated by a handful of ‘greedy’ doctors charging their patients more than twice the official Medicare Benefits Schedule fee.

This is the fourth in the AMA’s annual series of report cards on private health insurance. It is designed to assist patients/consumers by highlighting the differences in private health insurance policies, the operations of funds, and the changes implemented by the Australian government.

In 2017–18, an estimated $185.4 billion was spent on health goods and services in Australia. This equates to an average of approximately $7,485 per person and represents 10% of overall economic activity for this period.

Hooked on subsidies, the system is failing. The government needs to move beyond its prejudices about public and private financing, writes Jennifer Doggett.