There are warnings both public and private health patients will be hit hard by Federal Government changes to the Medicare levy surcharge.
More than two million Australians will be able to quit private health cover without being penalised, under reforms expected to be announced in next Tuesday's budget.
Many Australians will no longer have to pay the surcharge, with the threshold increasing to $100,000 for singles and $150,000 for couples.
Health Insurance Association Chief Michael Armitage says hundreds of thousands of people will now be flooding back to the public system.
“The States are going to have to get more money from the Federal Government to run their public hospitals," he said.
"What it means for those people who remain in private health insurance is that it’s likely that their premiums will rise."
The State Opposition says the move could lead to more people using the public health system, which is already struggling.
State Shadow Health Minister Jillian Skinner has called for a dramatic increase to funding for the State's hospital system if the changes to Medicare are adopted.
“It will create much greater pressure on already stressed public hospitals," she said.
"The Governments – State and Federal – are going to have to dramatically increase funding to shore up public hospitals to make sure that they can meet this extra demand.”
