Private health insurance to undergo biggest change in decades

Dayanthie and Anian de Silva, who live in Melbourne and currently have top hospital cover, were shocked to receive a letter from their insurer, Peoplecare.

Under the changes, insurers will also be able to offer additional benefits above the minimum tier requirements, branded as Basic Plus, Bronze Plus, Silver Plus and Gold Plus. Melanie Papworth, the owner of the Pilates and Yoga Shed in Yarraville, Melbourne said she had already had a number of clients tell her they'll have to stop Pilates classes if they are no longer covered by insurance.

Is there going to be a Royal Commission in to this?

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