Health insurers have asked Labor to allow annual premium rises of as much as 6 per cent, warning some funds will collapse or be forced to axe top hospital cover if the amount they charge policyholders does not keep pace with healthcare inflation.

Private Healthcare Australia, which represents health insurers including major players Medibank, Bupa and Nib, also said on Friday that it expected friction with hospital operators, surgical equipment suppliers and parts of the medical profession to increase as soaring costs put pressure on the healthcare system.