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The Conversation
Yuting Zhang, Professor of Health Economics, The University of Melbourne

Private health insurance is set for a shake-up. But asking people to pay more for policies they don't want isn't the answer

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Private health insurance is under review, with proposals to overhaul everything from rebates to tax penalty rules.

One proposal is for higher-income earners who don’t have private health insurance to pay a larger Medicare Levy Surcharge – an increase from 1.25% or 1.5%, to 2%. And if they want to avoid that surcharge, they’d need to take out higher-level hospital cover than currently required.

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