It all started with Risk Equalisation. It was introduced to even out the cost of insurance claims from older patients across all of the insurers.
Risk Equalisation is based on the idea that we all pay the same for the same level of health cover. How old or how healthy we are doesn't matter.
The Health Levy was introduced by the Government as a way of raising money to help those insurers with mostly older members deal with their higher costs.
So far, so good.
But the Government keeps increasing the levy – and not by small amounts, either. As a result, premiums keep going up too.
That's creating a vicious circle. Higher premiums are driving younger, healthier people away. That puts a heavier financial burden on those with health insurance so more people are forced to drop out. That means even fewer people have to cover the costs, so their individual premiums go up again... and so on and so forth. Eventually, the system stops working, leaving those in most need of support with no help.