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Catholic Health Australia has welcomed a lift in the amount private health insurers are giving back to patients and hospitals following the Health Minister’s call for insurers to raise their contributions.
“For several years health insurers have been banking substantial profits while returning less to patients and hospitals, threatening services and their viability,” said CHA Director of Health Policy, Dr Katharine Bassett.
“Today’s news that insurers have lifted the percentage of premium revenue being paid out in patient benefits is a positive step, and one CHA has consistently advocated for. We’re pleased the Minister’s intervention is delivering results.
“This improvement cannot be a one-off. More than 80 private hospital services have closed in the past five years, and therefore sustained support is essential to keep others from shutting their doors.”
CHA thanks Minister Butler and the government for their constructive engagement on the vital issue of hospital services and their viability through the Private Hospital CEO Forum.
“We now look forward to engaging with the Minister, and the sector more broadly, on the long-term reforms needed to keep private hospitals sustainable and prevent more pressure being heaped on the public system,” said Dr Bassett.
CHA is calling for the annual premium round process to be undertaken by an independent body such as the Independent Health and Aged Care Pricing Authority (IHACPA), to ensure premium increases accurately reflect the cost of delivering care.
This would pave the way for a National Private Price — a new approach to private hospital funding that replaces opaque, bilateral negotiations with a transparent, efficient, and sustainable pricing model.
