Private health insurance makes Australia's system unfair and muddled, report says

Australia’s health system is unfair and muddled and the prescription for its repair depends on the federal government’s approach to private health insurance. In a paper on private cover, Grattan Institute analysts Dr Stephen Duckett and Kristina Nemet warned the sector faced a death spiral if young, healthy people continued to drop their cover. An “unhappy mix” of partially public and partially privatized healthcare in Australia had led to a system “riddled with inconsistencies and perverse incentives”, the paper released on Tuesday said. Duckett said data showed all age groups over 65 were increasing their insurance while the remaining Australians were reducing their coverage. Among young people, about 3%-5% were dropping out each year, he said.