Act leader David Seymour used his state of the nation speech last week to call for a discussion on privatisation - including of the health system.

Seymour told his supporters New Zealanders need to get past the "squeamishness of privatisation", and suggested the health system could be privatised, with the government funding medical insurance for individuals.

Responding to the suggestions, Public Service Association acting national secretary Fleur Fitzsimons said private healthcare systems haven't worked overseas.

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