According to the Australian Prudential Regulation Authority (APRA), more than half of the nation’s population – 13.5 million people – are covered by a form of private health insurance. But some have argued that the system is difficult to understand when it comes to figuring out what different types of policies cover and if they offer value for money.

On top of this, rising health insurance premiums have led to some policyholders downgrading or cancelling their cover, with APRA data also showing that the proportion of Australians covered by private hospital cover recently dipped to 44.6%, the lowest it’s been in 11 years.

The government says it wants to make private health insurance simpler and easier for consumers to choose the cover that best suits them and their family.