The percentage of Australians with private hospital cover has dropped to its lowest level in seven years.
More than 12-thousand singles and families ditched their cover in the three months to December.
Tom Godfrey from consumer group Choice says their research shows cost is a major concern.
He said their research found that 70 per cent of people without private health insurance dropped it because it was too expensive.
So the message is clear, at the moment private health insurance is un-affordable for most Australians.