AMA calls for independent oversight of health insurers
The AMA calls for more transparency over how private health insurers spend policyholders’ premiums to help ensure they get fair value for money and premiums are not directed to insurers’ profits and administrative costs.
The AMA calls for more transparency over how private health insurers spend policyholders’ premiums to help ensure they get fair value for money and premiums are not directed to insurers’ profits and administrative costs.
The AMA has reinforced its call for an independent regulator to oversee private health insurance to ensure policyholders are getting fair value for money.
In an article in the Australian this week, AMA President Professor Stephen Robson called on the Federal Government to establish a regulatory authority to ensure that private health insurance policyholders were getting a fair return on their premiums.
“It’s not just premium holders that would benefit. Taxpayers fund a huge amount of the private system and deserve peace of mind that it is money well spent,” he said.
“It is why it is time to put in place a Private Health System Authority to oversee the future of our private health system.”
Research conducted by Catholic Health Australia using Australian Prudential Regulation Authority data revealed that major private health insurers were failing to meet the target of returning 90 per cent of premiums to their members in health benefits.
The research showed that NIB returned just 75 per cent of premiums to patients, Bupa returned 82 per cent and Medicare 84 per cent.
Dr Michelle Atchison, President of the AMA in South Australia and a Federal Councillor, said on 7News Melbournethat private health insurance was one of the cornerstones of our health system.
“The AMA is saying you really need to know where those premiums are going. We want as much of the dollars that you put into premiums to come back to you in health services and not be spent on administration or profits for the health insurers.
“The AMA has been calling for transparency and we want to know what is actually happening to the sector, how much of every insurers’ premiums are going back into health so we want someone independent and at the moment there is not.
“We want it to be independent of the government, independent from the health insurers….so we can keep everyone honest about what is going on and the public will know how much of their premium is actually going towards their health.”
