Summary: Despite universal public insurance coverage, private health insurance (PHI) covers almost half of the Australian population – a high coverage rate in comparison with most other OECD countries. Reflecting the belief that a well-functioning health care system should be based on a mixed system of insurance and provision, Australia’s policy makers have encouraged the development of private financing and delivery arrangements operating in parallel to the public system.
Introduction: Among the countries with large private health coverage, Australia is a fascinating case. Large interactions exist between public and private coverage systems. These are the result of government approaches to financing health care, which have largely linked private health insurance (PHI) to the private hospital system, so that support to the former has been an important part of the funding for the latter. Private cover is considered one main vehicle for enhanced choice of provider and level of care. Click here to read more on Private Health Insurance
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