10 March 2019 - Health funds are warning membership rates will plummet to 30% and some insurers will go out of business over the next decade unless urgent action is taken to reduce pressure on premiums and incentives to take cover are restored.

As the industry braces for disruption from the introduction of standardised "gold, silver and bronze" minimum levels of coverage on April 1, the health funds lobby group has cautioned Labor there is a danger private health care "retreats to a luxury market accessible only to wealthy Australians".

With hospital coverage declining over the past four years, Private Healthcare Australia chief executive Rachel David told The Australian Financial Review the health inflation rate – which can be as much as twice the Consumer Price Index inflation rate – coupled with tough economic conditions such as low wages growth is hurting funds ability to recruit and retain members.

Read Australian Financial Review article