The private health insurance funds paid a record $10.06 billion to members in the 2007-08 financial year, an increase of 10.4 per cent on the previous year, says Australian Health Insurance Association.
Association chief executive Michael Armitage said the figures underlined the importance of private health insurers to the health care system.
"It is also further evidence that the Rudd government's attack on the private health insurance industry via its proposed Medicare levy surcharge changes will cause dramatic effects on the provision of health care in Australia," he said.
"Given these record figures, all senators should give serious thought to the impact the passage of this legislation will have on the public hospitals in their states and the financial burden they will be transferring to their state health budgets when they vote next week on the Rudd government's proposals."
The government wants to increase the income thresholds - $50,000 to $100,000 for singles, and $100,000 to $150,000 for couples - at which the Medicare surcharge levy applies for taxpayers without private health insurance.
Critics warn up to one million people will dump private cover, placing greater pressure on the public hospital system.
The coalition has indicated it will oppose the bill, meaning the government needs the support of all five Australian Greens, Family First's Steve Fielding and independent Nick Xenophon to get its legislation through the senate.
