If we get rid of private health insurance, what happens next?

The Age

7 August 2019 - “Hey, hey, ho, ho, private health insurance has to go!” This is the relentless chant being sung in opinion pages and on talkback radio across the country. 

But what comes next if we dispose of this much-loathed part of our health system? Because, as many a revolution has shown, what comes next can be a lot worse than the most maligned status quo.

Those calling for the demise of private health insurance often claim we could redirect the $9 billion spent each year on the private health insurance rebate and Medicare rebates for private hospital care to the public system. While appealing from an economic and ideological perspective, even with additional funding our public system could not handle the additional demand. There are not enough beds or operating theatres, and the cost of acquiring or building new ones would be prohibitive.

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Michael Wonder

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Michael Wonder