Abolition of 2nd tier default benefit will hit private health fund patients
AMA Chair of Federal Council, Dr Dana Wainwright, today warned that if the Government proceeds with its proposal to abolish the 2nd tier benefit paid to high quality day surgery and small hospitals, patients with private health insurance will be denied access to timely care.
Dr Wainwright said removing the 2nd tier benefit would effectively take away the choice that patients have paid for by taking out private health insurance.
"Some patients won't be able to use their own doctor or choose the hospital they prefer," Dr Wainwright said.
"They will be forced by their fund to go to a hospital of the fund's choosing.
"The 2nd tier default benefit currently provides a safety net for patients when they seek treatment at a facility their health fund may not have a contract with.
"The benefit is usually less than the average paid by the fund for their contracted hospitals.
"The advantage of the 2nd tier default benefit is that it provides fund members with greater choice of doctors, hospitals, and, very importantly to many, the locality of facilities.
"By abolishing the benefit, the Government will be taking choice away from patients with private health insurance.
"The only ones with choice will be the health funds.
"The likely outcome will be an overall reduction in the number of hospital beds in the system as the smaller facilities will be forced to either close or cut back on procedures.
"This will place extra pressure on the public system.
"Abolishing the 2nd tier default benefit is bad policy that is a lose-lose for patients and the health system.
"It will seriously devalue private health insurance for many Australians.
"The AMA will continue to lobby the Government not to proceed with this decision," Dr Wainwright said.
CONTACT: Dr Dana Wainwright 0418 876 747
John Flannery (02) 6270 5477 / (0419) 494 761