Government acts on AMA calls to outlaw phoenixing and improve insurer transparency
The Australian Medical Association welcomes the federal government’s legislation to outlaw private health insurance product phoenixing and improve transparency on medical costs for patients.
Legislation introduced today would outlaw “product phoenixing” — a deceptive practice used by some private health insurers to extract higher premiums from consumers.
Product phoenixing involves closing an insurance product and re‑launching an essentially identical product at a higher price.
“The AMA has consistently called for this practice to be banned and welcomes the government’s action to put an end to it,” AMA President Dr Danielle McMullen said.
“The Health Minister himself described phoenixing as ‘underhanded’ and ‘sneaky’, and banning this practice will be an important win for consumers.”
The federal government’s legislation also enables the publishing of existing Medicare, hospital, and insurer billing data on the Medical Costs Finder website.
This would allow patients to see details about what individual specialists generally charge for particular medical services, what Medicare rebate is paid, and what contribution is made by the private health insurer.
“The AMA has pushed hard for Medicare rebates and insurer benefits to be included on the Medical Costs Finder, so that patients get the full picture of why they may face an out-of-pocket cost,” Dr McMullen said.
The AMA has been a vocal advocate for the Medical Costs Finder website for many years. Early versions of the website were unworkable for practice managers and doctors, and the AMA worked closely with the Department of Health, Disability and Ageing to address those issues.
“Private health insurers have been extremely reluctant to upload their information, which also created a significant disincentive for doctors to upload their own billing data,” Dr McMullen said.
“Access to insurer data is crucial for patients, alongside clear information on Medicare rebates, which have failed to keep pace with inflation for decades and remain a major driver of out‑of‑pocket costs.”
Dr McMullen said the AMA expects close consultation with the profession to ensure upgrades to the Medical Costs Finder are implemented effectively, with a strong focus on accuracy and ensuring the information genuinely supports patients.
The AMA publishes a detailed Informed Financial Consent guide — a document that empowers patients to discuss costs with their doctor before undergoing medical procedures.
