Members Health Fund Alliance has welcomed the latest Private Health Insurance Annual Coverage Survey released by the Australian Prudential Regulation Authority (APRA), showing more Australians are choosing private hospital cover and continuing to support Australia’s mixed public and private health system.
The latest APRA survey shows 12.7 million Australians now hold private hospital cover, representing 45.6 per cent of the population. Hospital cover membership increased by 287,393 people over the year to December 2025, reflecting continued growth in participation and strong demand for private healthcare.
Members Health, the national peak body for Australia’s not-for-profit and member-owned health funds, said the figures demonstrate a healthy and growing private health insurance sector that continues to play an important role in providing timely access to care and relieving pressure on public hospitals.
Members Health CEO Matthew Koce said the latest results show Australians continue to value private hospital cover.
“The addition of almost 290,000 people to hospital cover over the past year demonstrates that Australians continue to value private health insurance and the important role it plays in supporting timely access to healthcare while taking pressure off public hospitals.” Mr Koce said.
Members Health has warned that the Government’s proposed cuts to the private health insurance rebate for Australians aged 65 and over risk slowing this positive momentum by reducing the affordability of private health insurance and increasing pressure on public hospitals.
Under the Government’s proposal, Australians aged 65-69 who currently receive a rebate of around 28 per cent, and Australians aged 70 and over who may receive a rebate of more than 32 per cent depending on income, would have their rebate cut to around 24 per cent, increasing the cost of private health insurance for many older Australians.
Feedback from almost 4,000 Australians through Members Health’s campaign website highlights widespread concern about the proposed changes, particularly among older Australians on fixed retirement incomes.
Many respondents reported that despite maintaining private health insurance for decades, they are considering reducing or downgrading their cover. Around two-thirds believe the changes will result in greater reliance on the public health system as people cancel or downgrade their cover.
Members Health said declining participation and increased downgrading would place greater pressure on public hospitals and increase demand on an already stretched public health system.
” The latest APRA figures show hospital cover grew by almost 290,000 people in a single year. The concern is that the Government’s rebate cuts risk slowing that momentum at exactly the wrong time.” Mr Koce said.
“While the Government’s modelling focuses on people leaving private health insurance altogether, feedback from almost 4,000 Australians suggests the impact could be much broader. Many people are telling us they are considering downgrading their cover, relying more heavily on the public system, or cancelling altogether. That means more demand flowing into an already stretched public hospital system”.
“If fewer Australians can afford to maintain adequate cover, the consequences will be felt across the entire health system. More demand will flow to public hospitals, increasing pressure on services and waiting lists at a time when many communities are already struggling to access timely care”.
Members Health reiterated its call for the Government to reconsider the proposed rebate changes and work with the sector to protect affordability and support continued participation in private healthcare.
Members Health has launched a dedicated webpage explaining the proposed rebate changes. The page outlines what is changing, who may be affected, concerns raised across the health sector, consumer feedback collected through its national survey, and how Australians can make their views known.
For more information visit:
https://membershealth.com.au/rebate/
Members Health is the nation peak body for an alliance of more than 20 health insurers that are not-for-profit or part of a member-owned group, regional or community based. They all share the common ethos of putting their members’ health before profit. Our funds represent the interests of more than 5.4 million Australians.