Hospital managers have been told to bill insurers for patients with private cover - even if they end up using a trolley in a corridor.
And the move is likely to lead to higher healthcare premiums for families, as health insurers have not budgeted for it.
It is also expected to increase waiting lists and there are growing fears that the move is likely to see hospitals prioritise treating those with cover.
Charlie Weston spoke to Matt earlier, listen back here:
