Which of the following government initiatives has resulted in the greatest increase in the number of Australians covered by private health insurance since 1990? (A) The ‘lifetime health cover’ arrangements (B) An increase in the number of doctors who bulk bill their patients (C) The reduction in the Medicare levy for people who have private health insurance (D) The 2.5% tax levy on the taxable income of high-income earners without private health insurance - HSC - SSCE Personal Development and Physical Education - Question 7 - 2005 - Paper 1

The ‘lifetime health cover’ arrangements were introduced to encourage individuals to take out private health insurance earlier in life. By doing so, individuals avoid loading fees when they decide to obtain private health insurance later. This initiative effectively created a significant increase in the number of policyholders.

While an increase in bulk-billing doctors may improve access to public healthcare, it does not directly incentivize individuals to take up private health insurance. Therefore, this option is less likely to have contributed significantly to the increase in private health insurance coverage.

This option encourages individuals to maintain private health insurance to take advantage of the reduced levy, but it might not have as large an impact as the lifetime health cover, which directly affects policyholder behavior.

This tax introduction aimed to penalize high-income earners who do not subscribe to private health insurance, thereby encouraging enrollment. However, its impact may not have been as significant as the lifetime health cover arrangements.

After evaluating the implications of the initiatives listed, option (A) – The ‘lifetime health cover’ arrangements – emerges as the most impactful initiative for increasing private health insurance coverage since 1990.