Private health insurers are being urged to drop cover for homeopathy after a landmark study by the National Health and Medical Research Council found no credible evidence it is effective in treating health problems.

"I would think in the current financial constraints that health insurers private and public should be looking at ineffective versus effective treatments. Things that haven't been shown to be effective I wouldn't want to see funded publicly or privately," chairman of the NHMRC Homeopathy Working Committee, Professor Paul Glasziou said.