The Grattan Institute has released another report warning that Australia’s private health insurance industry is facing a “demographic death spiral” from an exodus of younger, healthier members, which requires urgent action to resolve.
Below is the report summary, along with key graphics:
The Australian private hospital insurance system is unsustainable in its present form. The system faces a death spiral – younger and healthier consumers get a bad deal, so they’re dropping their insurance, which means premiums need to rise, so even more young and healthy people drop out, and the cycle continues.
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Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
