I have lived and worked in Australia for 5 years. They have a hybrid public/private health insurance system.
Australia has a universal, government-funded health care system called Medicare (not only for seniors).
Australians are able to go to the hospital and see doctors free of charge under the system, but citizens there must purchase private insurance for some medical services. The system is partially funded by taxes, including an additional tax on wealthy Australians who do not have private health insurance.
Medicare, administered by the federal government, is the publicly funded universal health care system in Australia which was instituted in 1984. It coexists with a private health system. Medicare is funded partly by a 2% Medicare levy (with exceptions for low-income earners), with the balance being provided by government from general revenue. An additional levy of 1% is imposed on high-income earners without private health insurance.
As well as Medicare, there is a separate Pharmaceutical Benefits Scheme also funded by the federal government which considerably subsidizes a range of prescription medications.
Funding of the health system in Australia is a combination of government funding and private health insurance. Government funding is through the Medicare scheme, which subsidizes out-of-hospital medical treatment and funds free universal access to hospital treatment. Medicare is funded by a 2% tax levy on taxpayers with incomes above a threshold amount, with an extra 1% levy on high income earners without private health insurance, and the balance being provided by the government from general revenue.
Private health insurance, funds private health and is provided by a number of private health insurance organizations, called health funds. The largest health fund with a 30% market share is Medibank.
Medibank was set up to provide competition to private "for-profit" health funds. Although government owned, the fund has operated as a government business enterprise since 2009, operating as a fully commercialized business paying tax and dividends under the same regulatory regime as do all other registered private health funds. Highly regulated regarding the premiums it can set, the fund was designed to put pressure on other health funds to keep premiums at a reasonable level.
