Labor argues private health insurance has never been more unaffordable, with premiums to rise by 2.92 per cent in April.
Federal Health Minister Greg Hunt points out the rise is the smallest since 2001, but his political opponents say the increase is higher than inflation and wages growth.
"While costs soar as this government sits on its hands, people are voting with their feet," Labor's health spokesman Chris Bowen said on Monday.
Earlier this year, health department bureaucrats told a Senate estimates committee that while Australians were seeing record low premium rises, premiums were at an all time high.
Mr Bowen repeated his calls for a review of the private health insurance industry, but that's something Australia's peak medical body rejects.
Australian Medical Association president Dr Tony Bartone says stakeholders from across the industry, as well as Mr Hunt, needed to come to the table to work on immediate reforms.
"We all need to roll up our sleeves," Dr Bartone told AAP.
"A root and branch review will take a number of years ... we need to get on with this now."
He welcomed the low premium rate rises, but said overall costs were still becoming increasingly unaffordable.
Dr Bartone pinned this on low wage growth, products offering less value for money and confusion over the types of policies.
He believed Mr Hunt was committed to ensuring the industry's long term viability and said everyone needed to agree on new settings for the sector.
He said even critics of private health had started to realise its vital role and that without it, the public health system could crumble overnight.
While Mr Hunt pointed to the new tier system - where packages come in bronze, silver or gold - for private health as a way of combating customer confusion, Dr Bartone said it was too early to tell if that was working.
"(But) you're comparing eggs with eggs much more confidently," Dr Bartone said.
Private Healthcare Australia said premiums were rising because of the growing number of claims.
"Health funds don't want to increase premiums by a single dollar, but it is necessary to ensure health funds remain financially viable," chief executive Dr Rachel David said.
Australian Associated Press