Why is the Government encouraging people to take out private health insurance?
Prior to Government reforms such as the 30% Rebate and Lifetime Health Cover, the number of Australians with private health insurance was falling. This decline in membership numbers was creating unsustainable pressure on the public health system by substantially increasing Medicare costs. The Government is committed to easing the burden on Medicare by striking a better balance between the private and public sectors, ensuring that Australians have a choice in their health care through a viable private health industry operating alongside a high quality public system with universal access.