Health insurers and private hospitals are stepping up calls for government reform to help reverse a membership decline the regulator has warned is unsustainable, as tens of thousands of younger Australians drop their cover before the next premium rise
"The younger generation is feeling financially squeezed as health funds are paying record claims for hospital procedures in people aged over 55," Dr David said.
Grattan Institute health economist Stephen Duckett said the industry seemed to be "looking for a Santa Claus response" from the government and expected that "money would fall from the sky" to help fix its problems.
The bulk of the membership fall, 22,769 people, was in the 30 to 34-year-old age bracket – those Australians who would be expected to have signed up for health insurance to avoid being penalised through the taxation system under lifetime health cover rules. Mr Roff said a major opportunity for health funds to sign up members was when they started a family, but the median age at which a woman gave birth had increase from 29 when lifetime health cover was introduced to 32 today.
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