Private Health Insurance companies are warning more than 75,000 NSW residents would be forced to drop private health cover if the state government hikes taxes on insurers. 

Health Minister Ryan Park last week introduced legislation which would allow the government to increase the health insurance levy by almost 85 per cent following a stoush over the price insurers should pay for a private bed in public hospitals. 

Luke Grant chats with Private Health Australia CEO, Dr Rachel David about modelling which says the tax would increase costs to almost $670 million over four years and force insurers to increase their premiums.