Call for inquiry into health insurance industry

Doctors and patient groups have called for a national inquiry into the private health insurance industry, amid a rise in budget policies and exorbitant gap fees that are forcing many private patients into the public system.

The AMA and Consumers Health Forum of Australia have called for reform that should include the stamping out of so-called "junk" policies that lure in consumers with cheap premiums.

The outcry comes as insurance giant Medibank Private threatened to rip up its contract with major private hospital provider Calvary Health Care