Report warns over government actions on health insurance

A new report is warning the government is putting its own plans for universal health insurance in jeopardy by actions on the market.

Economist Colm McCarthy conducted the review on behalf of Aviva. It highlights the coalitions plan to charge private insurers the full cost of public beds as one measure the market cannot take at this time.

He says this measure along with the drain of younger members could see premiums rise by a whopping 25 percent.

Mr. McCarthy says the market is under stress and the government needs to be careful of its actions.

"I take your point entirely that the government is scratching around for money to make up the deficit on health, of course they are" he said.

"Of course loading an extra charge on the...market is one option; all I'm saying is it has consequences".

"And one of the consequences is that it's going to make the attainment of universal health insurance more difficult" he added.