The Private Health Insurance Administration Council's annual report has revealed that insurance industry is reaping great benefits in Australia. As per the data, more than half of Australians, around 52%, now hold private health insurance.

This in return has led to great revenue for those who are in this business. Bad part of the story is the gap between insurer's revenue and insurance payout is increasing. This has even gone wider due to inflation. This has raised concerns among the Gillard Government which has asked to take some stern actions in this regard.

As per the suggested way of the government, the 30% of the health insurance rebate should be means-tested so they are able to save up to $2.4 billion. It is not the first time when they have proposed this as legislation in the Parliament. For two times it got proposed and both the times it got rejected.

However, this time it is possible that the government would be able to make it pass in the Parliament as they have got successful in winning the extra seat in the House of Representatives. This has turned the tables completely as no some opposition members are also saying that they would also support the government's proposal.

One of them is West Australian Nationals MP Tony Crook, who affirmed that he is ready to have one to one interaction with the government in this regard. He has also affirmed that there are chances that he could support them for the proposal.

Health Minister Tanya Plibersek, who is supporting the means-testing proposal, said: "Because the private health insurance industry is in a strong financial position, it is not appropriate for lower and middle-income Australians to be subsidising the health insurance of millionaires".

Now, it is yet to be seen whether or not the government succeeds in its third attempt.