Health insurers are warning of an exodus from private cover under a Labor plan to change the way private hospitals are funded, which they say will make premiums unaffordable for more than half a million people.
Modelling by Private Healthcare Australia, which represents the country’s major insurers including Medibank, Bupa and NIB, suggests 560,000 people could drop out of the private health system if the government backs the introduction of a so-called benchmark pricing model for hospitals.
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