 Individuals and families can take out additional health insurance for services not covered by Medicare or for services provided in private hospitals.The Australian taxation system penalises higher income earners who do not take out private health insurance, with a Medicare Levy Surcharge of 1% to 1.5% being payable by those who do not take out private health insurance.Regulated by the Australian Prudential Regulation Authority (APRA) under the Commonwealth Insurance Act 1973.