AMA submission calls for private health insurance reforms
The AMA is calling for significant reform to the country’s private health system to make it more affordable amid rising cost-of-living pressures.
In a submission to the Department of Health and Aged Care, the AMA has welcomed proposed reforms to ensure private health policies better meet consumer needs, but acknowledged more work needed to be done.
The AMA is concerned many Australians are effectively being priced out of private health insurance policy products that meet their needs, as reports reveal some providers are increasing Gold health premiums by up to 8 per cent.
AMA President Professor Steve Robson has been in the media discussing the AMA’s submission, which was made in response to the final reports on private health insurance incentives and hospital default benefits, written by Finity Consulting and Ernst and Young (EY) respectively.
He said the submission renewed calls for a Private Health System Authority to protect patients and drive reform in what remains a highly complex system.
“Private health policy has been on the ‘set and forget’ mode for some time now, meaning the system is falling behind changing customer needs and demographics,” Professor Robson said.
“There is currently a policy reform black hole in the private health sector, leading to a system that doesn’t properly balance the needs of hospitals, medical device manufacturers, doctors, insurers, and most important of all — patients.”
Professor Robson said the AMA would continue advocating for private health to adapt to more innovative and efficient models of care, such as home-based and community-based care, but do so in a way that ensures patient choice remains the hallmark of the system.
The AMA’s submission agrees with many of the recommendations made in the Finity and EY reports, including the need to update and annually index the Medicare Levy Surcharge after years of zero or inadequate indexation, which has led to unfair settings that negatively impact people on lower incomes.
