Private health insurance : an expanding role in the future of health care?

March 9, 2015

Health care costs have been rising over many decades, and will continue to do so according to Treasury projections. Health care spending is taking up more and more of government spending and revenue - this cannot continue forever. In the future, there will be pressures to increase revenue or reduce spending - both of which are difficult due to an ageing population and political economy considerations. The likely future trend is people will have to take more personal responsibility for their health care costs and this will provide a greater potential role for private insurance. This report draws on public policy analysis, international experience and the literature on health financing to identify some worthy options for consideration based on these trends.