The Future of Private Health Insurance

Since it was mentioned in passing on another thread, I am starting a new thread about the medium/longer term future of the Private Health Insurance (PHI) industry – from an investment and policy perspective.

I have a pretty negative view of PIH – from both a personal point of view and as an economic “mistake” inflicted on us by government.

This recent article by John Menadue sums up the case against. He doesn’t mince words.

Recent so-called “reforms” by the government have done little to alter my own views or, apparently, to generate any confidence in the longer-term future of the industry.

As an industry that would barely exist without a quite massive government subsidy, recent pleas from company executives for even greater government involvement do seem a tad desperate. I think their proposals to move to a more “American” system of Health Insurance would be rejected outright by most Australians.

I’d like to hear other views, particularly from those who have made strategic decisions to invest in the industry. Where do you think it is going and why does it have an upside?

 

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