Scrapping private health insurance default benefit arrangements a lose-lose says AMA
The AMA has gone public with concerns about moves to change the private health system.
The AMA has gone public with concerns about moves to change the private health system.
The AMA’s concerns about moves to scrap private health insurance default benefit arrangements were reported on in The Australian this week.
In a submission to a federal government review on Private Health Insurance Default Benefit Arrangements the AMA argued getting rid of default benefit arrangements for private hospitals would mean bigger out of pocket costs and less choice for thousands of Australians.
The AMA’s concerns were reported in The Australian newspaper on Thursday with AMA President, Professor Steve Robson saying, “The AMA fears that if there is no defined benefit set by the government in circumstances where hospitals do not have contracts with insurers, insurers may pay doctors less for performing procedures, resulting in higher gap fees for patients.
“Second-tier default benefits ensure consumers can choose which hospital they want to be treated in and who they want to do the surgery,” Professor Robson said.
“This is incredibly important to ensuring the continued viability of our essential private sector because it’s about value.
“These arrangements allow for flexibility in the private medicine sector while providing an important safety net for patients if insurers and hospitals don’t have a contract.”
The AMA launched A whole of system approach to reforming private healthcare at a Private Health Summit which was also convened by the AMA earlier this year. The organisation argued a Private Health System Authority was needed to bring the sector together and build consensus on reforms.
