Ian McAuley | Means testing passes but do we even need health insurance?

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Ian McAuley discusses the real value of private health insurance and the possibility of a fairer health care system.

Read the full article published by The Conversation here

“When the government finally succeeded in its third attempt to remove the 30% subsidy for high-income earners holding private health insurance, the opposition’s response was a promise to restore it should the coalition be voted into office. Tony Abbott said the rebate “is an article of faith for the Coalition. Private health insurance is in our DNA…

Research shows countries that rely on private insurance to fund health care get no better health outcomes – but they spend much more than the countries that rely on the power of a single national insurer and market competition…

Policy makers need to ask not only whether private insurance adds value to health care – and our analysis finds it does not – but also whether it could serve a useful role under any circumstances.

Just as other sectors have had to do, the private health insurance industry should be required to show that in return for budgetary and regulatory support, it can achieve outcomes that could not be gained through other, less expensive means.”

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