The private health insurance industry is a parasite on the health system and the public purse. The government-funded rebate on private health insurance premiums goes to the insurers, not the health care providers, and allows the government almost no control over how its money is used to treat sickness and promote health.
If, for some reason unsupported by most of the evidence, the Government wishes to support private hospitals and private practitioners (as distinct from private health insurance companies), it would deliver itself, the public and patients a much better deal if it by-passed the useless middleman and negotiated with and paid private providers directly. (more…)