Sheer number of Aussies worried struggling public system won’t meet their health needs

Rebate cuts threaten private health insurance coverage as political debate reignites over reforms¹Sources: iSelect commissioned Pureprofile to conduct on online survey in October 2026. The sample size is n= 1,519.https://www.anneruston.com.au/media/interview-with-jamie-burnett-6pr-perth; https://newshub.medianet.com.au/2026/10/health-insurers-urge-the-government-to-reconsider-rebate-cut-set-to-impact-1-5-million-pensioners-after-senate-committee-recommends-the-bill-proceed/175374/; https://www.liberal.org.au/handsoffhealth; https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Community_Affairs/PvteHealthIns/Report

As debate over rebates for older Australians continues, new research from iSelect reveals more than a third of Aussies are not confident they could rely solely on the public health system if they lost or dropped their private health cover.

The findings come amid renewed discussion about the role private health insurance plays in providing timely access to healthcare, following the release of the Senate Community Affairs Legislation Committee report into the Private Health Insurance Amendment (Modernising the Private Health Insurance Rebate) Bill 2026.

While the committee recommended the Bill be passed, the Greens, Coalition and health lobby groups raised concerns about impacts on older Aussies, and elective surgery and public hospital wait times.

Asked whether they could rely solely on the public system to meet their health needs, 26% of Australians surveyed said they did not feel very confident and a further 17% said they did not feel confident at all.

iSelect’s Sophie Ryan said the figures underscored the value many Australians place on their private health cover, particularly for access to elective procedures.

“Aussies consistently tell us having choice and certainty when it comes to their healthcare is crucial,” Sophie said.

“Many see private health insurance as an important safeguard that can help them access treatment sooner and avoid lengthy waits for elective procedures,”

Sophie explained that the Senate inquiry heard evidence from patient groups, hospitals, insurers and health experts about the importance of private health insurance in helping Aussies access common procedures including joint replacements, cataract surgery and other specialist treatments.

“Concerns were also raised that if more people reduce or drop their private cover, additional pressure could be placed on already stretched public hospital systems.”

Sophie added the renewed debate serves as a timely reminder for Aussies to review their cover and understand what their policy provides.

“For many people, private health insurance isn’t just about the unexpected. It’s about having confidence that if you need surgery or specialist treatment, you’ll have options available to you,”

“Whether you’re approaching retirement, or simply reviewing your household budget, it’s worth taking the time to understand what your policy covers and whether it still meets your healthcare needs.”

With healthcare affordability and access remained key concerns for Aussie households, Sophie urged people to focus on finding cover that delivers value rather than simply letting their policy roll over each year.

“Comparing policies regularly can help Aussies understand what’s available, whether they’re paying for inclusions they no longer need, or whether there may be better-value options on the market.”

– ENDS –   

iSelect’s top tips for finding suitable private health insurance

1. Review your policy regularly – Health needs and financial circumstances change throughout our lives. Ask yourself “what do I need to be covered for?”. Review your policy to make sure you’re not paying for things you don’t need and that you’re covered for the things you do.

2. Could a higher excess save you money on your premium? Generally, the higher the excess or co-payment you are willing to pay, the lower the premium. If you think it’s unlikely you’ll be admitted to hospital in the near future you could opt for a higher excess on eligible policies in exchange for lower overall premiums.

3. Offers, deals and freebies – Some funds may be offering incentives around certain times of the year and it could be a good idea to shop around and take advantage of any deals and offers! Remember though, a good deal doesn’t necessarily mean the cheapest. Make sure the policy is suited to your needs.

4. The extras – There is a wide variation between funds on what services are offered and what you’ll get back as rebates under extras cover. Ask yourself if you even need extras. You could consider flexible products that combine your separate extras limits into a single annual limit for you to use across different services.

5. Know your rights – Did you know that any hospital benefit waiting periods you’ve already served will be protected by law if you switch to an equivalent or lower level or hospital cover? Yes, it’s true!