It can help out the hospital if you use your private insurance.

I have had some recent experience in a public hospital (not for giving birth) where they ask that you use your insurance to help them out financially. They said that it helps them to help more people and I guess it takes the pressure off the public health system in general.

The hospital has a policy that they only charge as much as your insurance will cover so you don't end up paying a gap. Also they were happy for you not to use your insurance if you would have to pay an excess.

I'm sure it varies at different hospitals, but in my case it seemed to be the socially responsible thing to do. I have already paid for my insurance, so why not use it? My insurance can cover my costs and the public system can then help out another woman in my situation instead. Maybe it isn't as simple as that, but it makes sense to me.