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Public Hospitals to Benefit from Private Health Cover Surge

Public hospitals will be the long-term beneficiaries from the huge surge in private health insurance cover revealed in figures released today, the Federal President of the Australian Medical Association, Dr Kerryn Phelps, said today.

The figures show that, at the end of June, 41.2% of Australians (7.9 million) have private health cover, up from 30.5% (5.8 million) in 1999.

"The AMA has fought long and hard for appropriate measures to get private health insurance back on track," Dr Phelps said.

"We have seen a spectacular increase in private cover and this trend is likely to continue when the next quarterly figures are released in three months time.

"The policies in place are, however, not perfect. The AMA will be monitoring the products offered by health funds to ensure patients have the widest possible choice.

"There must be no restrictions on choice of doctor through control mechanisms such as preferred provider lists.

"Contracting also remains a serious threat to the doctor-patient relationship.

"We encourage health funds to fast track the development of no-contract gap insurance products now possible under new legislation proclaimed last week.

"The AMA is also seeking assurances from the major parties that they will consolidate and enhance the gains made in private cover, and not seek to undermine them.

"The huge gains in private cover will help ease the pressure on public hospitals. The major parties should help the public sector by lifting funding levels, not cutting support for the private sector.

"The major parties should now announce their intentions to support the public sector by lifting funding levels," Dr Phelps said.

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