A giant shit show
The government has been cooking this frog slowly. Originally, the cards were entirely optional. Then you had to provide them to open bank accounts and lodge tax returns. Then they shut down the very convenient out of hours kiosks that municipalities provided to print key documents, and forced you to use MyNumber or take the day off work. Now the health insurance card integration is intended to make them effectively mandatory.
Problem is, getting a card is a typical government service. It can take 3 months or longer. So you'd better hope you don't get sick. Or if you do, that you are wealthy enough to pay out of pocket. What makes me think that politicians get their cards without all the rigmarole of the little people?
And, of course, the system is discriminatory. A citizen's card lasts 10 years and when it is about to expire they get a renewal form sent to them. Foreigners get a card that expires when they renew their visa (which can be as short as 6 months), and get no renewal form sent to them. Do they get a refund on the health insurance? Don't be silly.
Will they actually fix any of this? No. The system is ony intended to extract more tax.