Labor supports strong calls from the APRA Executive Board Member Geoff Summerhayes that action is needed urgently to tackle the challenges facing private health insurance.

Mr Summerhayes has today said that a new approach is urgently needed on private health insurance and that difficult conversations must occur involving all the industrys major stakeholders.

The speech also describes the term death spiral used recently to portray the state of private health insurance as pretty accurate.

It couldnt be more obvious that as costs soar and people vote with their feet, this Government just sits on its hands.

Government action is needed immediately to ensure the sustainability of the entire industry, including for those smaller and not for profit funds who should continue to play an important role in the Australian health system.

Greg Hunt appears to be too arrogant to adopt a root and branch review of the private health system.

As a result, the cost of private health insurance is at a record high, and has never been more unaffordable for Australians.

The Government should listen to Mr Summerhayes calls for major structural and policy reforms.

Last year even the big insurers called for urgent Government review and reform, with one insurer saying:

"There has never been a more urgent time for further reform to drive down the cost of healthcare in Australia."

In the meantime, Minister Hunt allowed the lions share of private health insurance premiums to rise by over 3.25 per cent in the recent round of premium increases.

Its deeply concerning that under this Government premiums have risen by 33 per cent on average and the average Australian family is over $1,000 worse off.

Its past time for Minister Hunt to claim responsibility and get on with the job of making private health insurance affordable and sustainable.