Transparency needed in private health premium hike process
AMA President, Dr Kerryn Phelps, said today that more transparency is needed in the process for private health insurers seeking Government permission to increase premiums.
Dr Phelps said now that taxpayers are subsidising the private health insurers through the private health rebate they need to know they are getting full value.
"Any increase in premiums is hard to take, so it is not surprising that Medibank Private's reported bid for a 13 per cent increase is being met with outrage by the public," Dr Phelps said.
"Premiums have been held down for a couple of years, but new members are being confronted with an unexpected steep price hike for their private health cover.
"When you have families on tight budgets who have been encouraged into private health it is only fair that they know the true financial state of the funds and why they are being asked to contribute more and more in premiums.
"People should not be penalised for getting sick.
"On the other side of the argument, it is important that both parts of the health system - public and private - are maintained.
"The costs of providing quality medical services are increasing in excess of the CPI.
"On top of this we have pressures like medical indemnity insurance, costs of technology, higher award wages, and higher costs in caring for an ageing population, and these effects will compound over time.
"The AMA has been calling on the Government to address the Medicare Benefits Schedule (MBS), which has not been properly updated for decades.
"By setting appropriate and realistic fees through the MBS, some of the pressure will come off the funds and patients will not face increasing gap payments for important medical services.
"It is time to put patients' interests ahead of the funds," Dr Phelps said.
In regard to the rumoured AXA/MBF merger, Dr Phelps said the AMA would be looking closely at any impact on the interests of doctors and patients. While there are clearly benefits with another big player in the market, the AMA does have some initial concerns because neither fund has an approved gap cover scheme.
CONTACT: John Flannery (02) 6270 5477 / (0419) 494 761
Sarah Crichton (02) 6270 5472 / (0419) 440 076