The NSW government will advocate to allow private health insurers to cover visits to general practitioners, in what would significantly extend the power and reach of the industry.

A submission to the federal government's review of the private insurance industry advocates a greater role for private health insurance in primary care, particularly to manage people with chronic conditions and prevent them from going to hospital.

NSW Health Minister Jillian Skinner has been called a "gay icon" as she championed the the trial. Credit:Peter Rae

Critics have warned that allowing private health insurers into GP practices will create a "two-tier system", because those with private cover will get longer consultations and preventative care, while those who cannot afford it will get more superficial treatment.

Opposition health spokesman Walt Secord, who obtained the submission under freedom of information laws, said it revealed the NSW government did not support a public health system.