Alterations made to the Medicare levy threshold have resulted in private health insurance insurers making financial plans to prepare for a mass departure of clients.

The first private health insurer to give information on how much they expect to lost was the private health insurer NIB, who forsee a ‘shock loss’ of 25,000 policy holders after July 1st when the variations are expected to hit hard.

NIB believe that most likely to leave were younger age group policy holders, or customers with more basic cover, all of whom would be aiming to avoid a surcharge.

After the Government declared its plans to take away the income threshold for the Medicare surcharge last week, NIB’s share price has dropped more than 20%. The surchagge is applicable to anyone without private health insurance, from $50,000 to $100,000 for singles and from $100,000 to $150,000 for couples.

Health Minister Daniel Andrews, a spokesman for the state is worried about an expected inundation of patients from the private system;

"We're concerned that these extra patients will eat up any expected additional Commonwealth funding under the health care agreements," he said.

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Catherine is an author of several articles pertaining to Health Insurance. She is known for her expertise on the subject and on other Business and Finance related articles.