Topic Choice 2: Private health insurance in Australia

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Topic Choice 2: Private health insurance in Australia

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In hospital care, Australia has a mixed public-private system. Hospitals are financed through a mixture of general taxation, levies, private health insurance premiums and patient co-payments. Hospital treatments are provided by State-owned public hospitals as well as non-profit and for-profit private hospitals. About 48 % of the Australians have any form of private health insurance. People who hold private insurance remain eligible to receive care in public hospitals. In this system, universal health insurance and private health insurance co-exist.

In this essay, you should answer the following questions using your knowledge of the Australian health care system and concepts learned during the course:

1) Why does health insurance, in general, exist in health care market? Explain.
2) Why do around half of the Australians have private health insurance despite universal health insurance?
3) What could be the potential effects of increasing private health insurance premium on the public and private hospitals?