What is the purpose of private health incentives?

• A. To eliminate public health funding.
• B. To maximize funding through the private system and reduce strain on the public system.
• C. To decrease access to health services.
• D. To make private insurance mandatory for all.

Answer: (B)

Private health incentives are intended to encourage people to take out private health insurance and use private health services, so more funding goes into the private system and demand on the public system is reduced. By shifting some elective care and routine services into the private sector, the public system (Medicare) carries less burden, which can help reduce waiting times and keep funding sustainable. It’s not about eliminating public funding, restricting access, or making private insurance mandatory for everyone—it's about nudging people toward private coverage to share costs and relieve pressure on public hospitals.