Private Healthcare System

Over 11.7 million Australians are covered by private health insurance.

It is a myth that Private Health Insurance is for the rich.

Of the 10 million Australians with Hospital Cover:

  • 5.6 million people with private hospital cover live in households with a total annual income of $50,000 or less
  • 3.4 million people with private hospital cover live in households with a total annual income of $35,000 or less
  • (Source Australian Bureau of Statistics and Australian Taxation Office)

Graph Showing Private Health Insurance by Income

Since the 30% Rebate was introduced in 1999 total benefits paid on behalf of Australians with Health Insurance by Private Health Funds to healthcare providers (including Hospitals and Doctors) have increased by 199%. This includes:

  • a 498% increase in benefits paid for prostheses;
  • a 514% increase in specialist costs; and
  • a 207% increase in total hospital benefits paid.

During Year Ending December 2010 benefits paid by Private Health Funds increased by:

  • 6.3% for public hospitals;
  • 8.8% for acute private hospitals;
  • 6.4% for day hospital facilities;
  • 7.7% for medical benefits;
  • 8.6% for listed prostheses; and
  • 8.1% for total hospital benefits.