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>>(5) Private health insurance rebate: Providing health funding via the insurance companies is inherently inefficient as each company has to spend money on their own execs, advertising, etc.<<
OK, so that accounts for 10%.
We are still $6 billion-plus out of pocket.
The idea, you suggest, is:
>>The funding comes from shifting spending - Roads to Rail, Defence to Education, Private Health to Public Health.<<
But if you have persuaded people that there is no point in taking out Private Health Insurance - or made it ridiculously unprofitable to do so - then there will be no money to transfer.
I failed to make this point clearly in my last post, so let me see if I can rephrase it so that it is more obvious.
If I (and 10 million others) spend $700 a year on my Private Health Insurance, the government puts in an extra $300.
That's $10 billion all up.*
The Health Funds have expenses of around 10% of this figure, so that's $9 billion that actually goes into the hospital system. It pays for beds, it pays for surgery, it pays doctors and nurses and ancillary staff. etc. etc.
You make it unattractive to take out Private Health Insurance.
So, nobody does.
You get back the $3 billion, sure, which you can dump into the Public Health system.
But the hospital system as a whole is $6 billion out of pocket.
It was previously provided by policyholders. It doesn't exist any more. So you can't shift it to the Public system, because it isn't there.
The demand for services rises every year, as does the cost of providing them.
Where is the missing $6bn coming from? And how will it continue to be funded in future years?
(Clue: no country in the world has yet made a success out of universal free health services.)
*note: the actual figures are a little higher than this, but I use round numbers to keep it simple.