A new report is warning the government is putting its own plans for Universal Health Insurance in jeopardy by actions on the market.

Economist Colm McCarthy - who conducted the review on behalf of Aviva - highlights the coalitions plan to charge private insurers the full cost of public beds as one measure the market cannot take at this time.

"In the absence of measures to encourage private health insurance membership, the momentum in the figures continues to be downwards. This has implications for the government's plans to introduce Universal Health Insurance" the report states. The report also notes the "proposed public bed re-designation will add about 13% directly to premiums on a full-year basis".

He says this measure along with the drain of younger members could see premiums rise by a whopping 25%.

"The continuing drain of young adult members will result in upward pressure on premiums".

Mr. McCarthy says the market is under stress and the government needs to be careful of its actions.