Private Health Premiums: Time to get rid of the asterisks and the small print
AMA President, Dr Kerryn Phelps, said today that reported premium increases for private health insurance must be accompanied by a commitment from the private health industry to greater openness and transparency about their costs and their products.
Dr Phelps said taxpayers are now contributing to both the public and private health sectors and deserve to know exactly what they are paying for.
"With taxpayers now contributing to private health through the rebate, they should have access to more information about the industry, the funds and especially the products and services they are purchasing," Dr Phelps said.
"After all, private health premiums are now a significant chunk out of an average family budget.
"Patients were told that the private health rebate and Lifetime Health Cover would put downward pressure on premiums. This is clearly not happening. Premiums are rising and will continue to rise as the costs of delivering medicine increase.
"Health fund members and other taxpayers should be informed of the factors contributing to premium increases - including management costs, administration and advertising - and, within reason, be given an idea of the financial outlook of the funds. Taxpayers are now de facto shareholders.
"More importantly, patients must have certainty in the products they are being encouraged to buy.
"The health funds must eliminate the asterisks and the small print from the advertisements for their health products.
"Patients must know exactly what they're getting and the price they will be paying for that product or service.
"The AMA supports a strong private health sector to balance the public health system but the public needs to have total confidence in the products and services being offered by the health funds - and the costs of those products and services - if that balance is to be maintained,"
Dr Phelps said.
CONTACT: John Flannery (02) 6270 5477 / (0419) 494 761