Consultation on the Private Health Insurance (PHI) Incentives and Hospital Default Benefits Studies

Closed 15 Aug 2023

Opened 6 Jun 2023


Independent studies were announced in the 2020-21 and 2021-22 Budgets and covered the following:  

  1. The effectiveness of the regulatory settings for the Medicare Levy Surcharge (MLS), Rebate, and Lifetime Health Cover (LHC) (collectively referred to as the PHI Incentives); and  

  1. Hospital Default Benefits. 

The aim of these studies is to identify opportunities to improve the affordability and quality of PHI cover for consumers to access private health services and to optimise the contribution private health makes to the health system. 

Finity Consulting (Finity) undertook the review of the PHI Incentives and Ernst and Young (EY) undertook the review of the Hospital Default Benefit arrangements.

The Consultation Paper has been prepared by the Department of Health and Aged Care (the Department) in response to Finity’s and EY’s findings and recommendations and contains specific questions.

Why your views matter

The purpose of this consultation is to seek stakeholder and community feedback on the reports’ findings and broad direction.

The diverse perspectives, experiences and knowledge of all stakeholders and interested members of the community are valued and respected and will contribute to the studies.

How to respond

The Department’s Consultation Paper can be found under ‘Give us your views’.

The study reports can be found under ‘Related’.

Please submit your response via email to by 3pm Tuesday 15 August 2023. Please also contact the Department via if you would like to participate in any information/webinar sessions on the study reports.  

When responding, please indicate whether you are contributing to the consultation process as a private health insurer, private hospital, representative body, business representative, member of the public, or in any other capacity.

To continue to support stakeholder engagement the Department intends to publish responses. Respondents are asked to clearly identify any sensitive or commercial-in-confidence material that is not to be published.


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