Why we’re paying too much for health insurance

Australians are paying comparatively more for health insurance than Britons and New Zealanders.

An international comparison has found Australian families are paying up to $400 dollars more per month for private health insurance.

But public policy consultant and former advisor to Tony Abbott Terry Barnes said hospitals and health services providers were also very good at making deals for the highest prices.

‘It’s the way they do bargains with health funds,’ he said.

He said the UK and New Zealand have risk rated private health insurance, where customers pay a premium according to age and state of health.

Click PLAY to hear Terry Barnes on 3AW Breakfast: