A new funding model for a chronic-care focused healthcare system in Australia

•The Australian healthcare system is challenged by the rising health expenditure, chronic conditions and the duplication of insurance coverage and service provision.•Our proposed Mandatory Integrated (Public and Private) Health Insurance (MIPPHI) Model theoretically aims at improving the sustainability and the efficiency of the Australian chronic and long-term care through 22 policy actions.•Further work would be required to design and develop an implementation strategy for Australia.