PRIVATE health insurance ultimately is a gamble. The insurance companies mostly post a profit, so you can be sure they are paying out less than they are taking in. Nobody, however, wants to be caught out with a dodgy knee, a hearing problem, or cancer and not have access to the best care.

... Private health insurance premiums are about to jump again - by 5.78 per cent this time, which equates to up to $200 for a family each year. They went up last year by more than 6 per cent.Privately insured taxpayers still contribute to Medicare, and still have to cover gaps.

... Private health insurers paid out about $11 billion last year and Federal Health Minister Nicola Roxon says the payouts will increase. She insists the Government is keeping increases at a "minimum necessary to meet legal requirements such as maintaining the solvency of insurers", and is proud of the Government's record of encouraging people to take up private insurance.

... Some argue governments need private health insurance, that without it the public system would be overwhelmed.

A third choice for those dithering over private versus public, is a DIY health insurance. Some people set up a system - on their own, or with friends or family, where money is fed into a high-interest account rather than to a corporation. It can sit there, to be used when needed, and if not needed, eventually refunded.

As with anything in health, insurance is a minefield to negotiate. You can spend thousands of dollars for cover you might never use, or you can try your luck with a public system and its waiting lists. That is your choice.

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