Our Position – Redesigning private health insurance products for value and choice

Private health insurance plays a vital role in supporting Australia’s public-private healthcare system, offering consumers an alternative pathway to care, fostering choice, and alleviating demand on the public sector. Historically, it has played a critical role in enabling timely access to elective procedures and specialised services, while also supporting the sustainability of the broader health system. However, in recent years, the private health insurance market has faced growing scrutiny due to increasing complexity, affordability challenges, and diminishing transparency. These issues risk undermining consumer confidence and threaten the long-term viability of private health insurance as a viable complement to public health services.

This paper presents a comprehensive analysis of the challenges facing Australia’s private health insurance market and offers a set of targeted reforms aimed at restoring simplicity, enhancing consumer protections, and promoting equitable access to high-value care. By addressing these issues, the private health insurance sector can better fulfill its promise of supporting the health and wellbeing of Australians, while ensuring the sustainability of the nation’s health system as a whole.