The number of Australians with private health insurance has fallen steeply with the percentage of Australians holding private health insurance (PHI) at the lowest in 11 years (44.6%) , according to the latest the Private Health Insurance Membership and Coverage publication from the Australian Prudential Regulation Authority (APRA).

The data shows that 12,370 Aussies dropped their hospital cover in the December quarter alone. While the 44.6% participation rate marks an 11-year low for health insurance, the December quarter also marked the second straight year that the actual number of Australians with hospital insurance fell, reported finder.com.au.

Chief executive of Private Healthcare Australia (PHA) Dr Rachel David said that the percentage could fall to 30% by 2030-2035 if nothing was done to address rising healthcare costs.

"APRA's December quarterly data show a decrease in hospital treatment membership of 12,370 people compared with the September 2018 quarter, with the largest movement among people aged between 25-29," she said in a statement.

Meanwhile, Australian Private Hospitals Association (APHA) CEO Michael Roff said that those who have kept their coverage are using it at an increasing rate, as episodes of care in private hospitals saw an uptick of 1.6% in the December quarter, with 940,922 privately insured hospital treatment episodes.

"While it's disappointing to see participation in private health insurance drop, we know it's not because Australians see low value in private hospital care. Australians recognise the importance of being able to access care when they need it, with the doctor of their choice and the high quality of care provided in the private system," Mr Roff said in a statement.