Explore the complexities of the Australian private health insurance market in this 44-minute lecture from the University of Melbourne. Delve into the reasons why 44% of Australians opt for private hospital insurance despite free access to public healthcare through Medicare. Examine the changing motivations behind purchasing private health insurance over time and analyze the government's role in subsidizing the private insurance industry. Investigate how various government interventions influence individual decisions to buy private hospital insurance. Learn about insurance theory, premium factors, survey results on reasons for private health insurance, and specific government policies such as Lifetime Health Cover and age-based discounts. Gain insights into proposed reforms, including age-related premiums, rebates, and simplification of choices. Conclude with a discussion on the goals of private health insurance and its impact on the Australian healthcare system.