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Young Australians dump private health insurance in record numbers as costs continue to rise - prompting a complete overhaul of the industry (stock image)

Why do tens of thousands of young Australians dump their private health insurance policies and save thousands of dollars – but endanger their lives

  • Young Australians dump private health insurance in record numbers
  • There were 33,975 young people who left their cover in just one year
  • Thought of the Australian Prudential Regulation Authority caused concern
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Young Australians dump private health insurance policies in record numbers as costs continue to rise – prompting a complete overhaul of the industry.

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The number of people with health insurance dropped to 44.6 percent for the year ending 2018, according to data released by the Australian Prudential Regulation Authority.

It is the lowest figure since 2006.

The steepest fall was among 20 to 29 year olds, with 33,975 leaving their cover.

On Twitter, many young people claimed to have dropped their private insurance because they had to pay thousands for unsecured operations.

Young Australians dump private health insurance in record numbers as costs continue to rise - prompting a complete overhaul of the industry (stock image)

Young Australians dump private health insurance in record numbers as costs continue to rise – prompting a complete overhaul of the industry (stock image)

& # 39; I have top-level health coverage and have spent more than $ 10k out of pocket money on dentists with more to pay if I can save for it, & # 39; a woman said.

& # 39; I am in ACT and have a top-level private level. Last year was $ 12k out of pocket for necessary stomach surgery but the public waiting list was 6+ years. Unfortunately not many options and luckily we had savings & # 39 ;, another said.

According to the Grattan Institute, Australia's private health insurance industry is in a & # 39; death spiral & # 39 ;.

Researchers claim that the spiral is caused by young people and healthy people dropping their cover, which means those who are more likely to fall ill and go to the hospital, which has further increased insurance costs.

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They blamed the fact that premiums are rising faster than wages or inflation.

According to the Grattan Institute, the private health insurance industry in Australia fears that it will be in a & # 39; death spiral & # 39; and urged urgent policy reform (stock image)

According to the Grattan Institute, the private health insurance industry in Australia fears that it will be in a & # 39; death spiral & # 39; and urged urgent policy reform (stock image)

According to the Grattan Institute, the private health insurance industry in Australia fears that it will be in a & # 39; death spiral & # 39; and urged urgent policy reform (stock image)

Tony Bartone, president of the Australian Medical Association, told the National Press Club in Canberra on Wednesday that Australians dropped out because they knew when they were selling a guy.

& # 39; Private health insurance is currently in trouble – real issues, & # 39; he said.

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Bartone argued that private health insurance reforms should address the variation in discounts and the indexation of discounts in order to curb the 15 consecutive quarters of decreasing coverage.

Australia & # 39; s private health insurance & # 39; death spiral & # 39 ;:

Only 44.6 percent of Australians have private health insurance.

Figures fell by 1 percent for the year until December 2018.

The group between 20 and 29 years of age saw a 7 percent drop with coverage for private hospitals.

Almost all age groups under the age of 65 saw a decrease in health insurance.

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& # 39; This reform must now begin. We cannot wait for another ten quarters of decline. The death spiral is already underway. & # 39;

He also said that immediate action should be taken to improve care for the elderly, including the introduction of a minimum staff / resident ratio corresponding to the level of care required in each institution.

The AMA also wants Medicare discounts to be increased by at least 50 percent for doctors who visit elderly care centers.

Dr Bartone's comments come after the government committed itself in May to a new long-term preventive health plan.

More than half of Australians live with a chronic illness such as arthritis, cancer, respiratory diseases, heart disease or diabetes.

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Dr. Bartone emphasized the importance of investing in preventive health policies and the need for a tax on sugary drinks, restrictions on unwanted advertising for children and a new national alcohol strategy.

& # 39; We cannot expect the health system to constantly turn us off because we have played gay indifference to take care of ourselves. & # 39;

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