A study is claiming Australia's public hospital system is so good that Australians don't really need to fork out cash on a private health fund.
Major investment bank Morgan Stanley are behind the analysis, warning that many people see the free system as "adequate catastrophe cover", News Corp reports.
They also believe the claims that private health eases pressure on public hospital waiting lists is a myth and dismisses the government's tax penalty, that forces higher income earners into private health.
"The private health industry has become lazy and the government should refuse any premium rises for three years to force the industry to sort itself out," Morgan Stanley Executive Director Daniel Toohey told News Corp.
Health funds made $1.4 billion in profits in the last financial year.