Many families in Australia may face a 15 percent rise in health insurance premiums next year as many members are choosing to stop their private cover.

The insurance industry predicts that 913,000 Australians will leave there private health cover due to changes in the tax system, it is believed that the exodus will lead to a $1.8 billion patient surge into public hospitals.

The Australian Health Insurance Association believe that nearly 80 percent of those leaving will be aged 30 or over causing a lot of added pressure on Australia’s public hospitals.

The remaining sticking with private health cover will have to pay more to ensure the funds remained viable. Health insurance premiums have already risen by 5 percent this year and are look set rise by a further 10% the health insurance industry warned.

The Australian health minister Nicola Roxon has sent out a warning to any of insurers looking to take advantage of the situation by pushing for sizable premium rises.  “I will take a dim view of insurers using these changes as an excuse to hike up the fees they charge people," Ms Roxon warned.