Actuaries Institute global perspective on Australian healthcare: optimism for progress in tackling sustainability concerns

• Australia’s health system ranks well internationally: people are living longer and becoming healthier
(although there are areas for improvement).
• Australia must look offshore for pathways to improvement to remain competitive.
• Options include better integration of public and private systems and some risk adjusted funding with
rebates to support community rating for those in need (rather than only income-based rebates on
premiums).

The Actuaries Institute Dialogue paper* that compares Australia and other developed countries finds
possibilities for better integration between private and public health care without the need for radical
changes, but rather building on what exists.

“Australia’s health care system compares favourably to other developed countries,” the report states.
“Nonetheless there are areas for improvement.  Australia’s high out-of-pocket expenses and health cost growth suggests a need to review the health system to ensure sustainability for future generations.”

The authors of the Dialogue paper, Private Health and Health Care Financing – Learning from the
World, are: Josefa Henriquez, former advisor, the Ministry of Health, Chile; Andrew Matthews, Chief
Actuary at Medibank and Associate Professor at Monash University; Dr Francesco Paolucci, Professor of
Health Economics at the University of Newcastle and the University of Bologna School of Economics
and Management; and Adam Stolz, Deputy Chief Actuary at Medibank.

The Dialogue paper, published by The Actuaries Institute, builds on work presented in the Green Paper,
released June 2019, How to Make Private Health Insurance Healthier. The paper expresses the views of
the authors.

Full press release

A full copy of the report can be found here.