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Mixed Bag of Private Health Announcements

AMA President, Dr Mukesh Haikerwal, said today's private health policy announcements by the Government are a mixed bag, with the decision to sell off Medibank Private doing nothing for the fund's members.

Dr Haikerwal said the sale may ultimately have an inflationary effect on health insurance premiums across the board.

He said that whoever buys Medibank Private would have to recoup their investment and that would have an impact, not just on Medibank Private members but on all people who are privately insured, through higher premiums as a result of less competition.

"It would have been much better for the fund to be mutualised so any benefits would flow directly to the members," Dr Haikerwal said.

"There are more benefits for insurers than consumers in today's package.

"The Government's subsidy for the industry via the rebate stays in place at current levels, the premium increase approval process is relaxed, and the funds now have unfettered access to services outside hospitals with the green light to cover outpatient services, out-of-hospital services and chronic care management.

"Consumers get some benefit through relaxation of the Lifetime Health Cover provisions.

"As the Government's statement notes, the AMA is working closely with the Health Minister, Tony Abbott, and the private hospitals on an education campaign to improve the rates of Informed Financial Consent on medical services.

"The health insurers need to be more actively supportive of this process, including offering 'known gap' products. They must do more to inform their members about health fund benefits prior to the provision of a service.

"The AMA welcomes the moves by the Government and the Private Health Insurance Ombudsman (PHIO) to encourage the funds to make their products more competitive and attractive to consumers by comparing and ranking them on the PHIO website.

"This can only make it easier for people when they are making a significant investment in their family's health.

"They need comfort, security, value for money, and confidence that the health insurance product they are buying will deliver all that it promises,' Dr Haikerwal said.

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