PRIVATE HEALTH CARE FACING "DEATH SPIRAL" IF YOUNG HEALTYH USERS ABANDON INSURANCE, REPORT SAYS

ABC News - Australia's health care system has become increasingly unfair, costly and confusing, according to a new report, which has declared the Federal Government is facing an impending crisis which can only be averted by urgent reform. The Grattan Institute report paints a bleak picture of the private health system, saying it has become "riddled with inconsistencies and perverse incentives".

It said if current trends continue, Australia will find itself in a "death spiral", where young and healthy people abandon private health cover, leaving a larger proportion of unhealthier, older and expensive users.That will keep forcing premiums up, leading to a further exodus of healthy users, and placing insurers under immense pressure to contain costs...>>>