MUCH-NEEDED HEALTH INSURANCE REFORM ABANDONED AGAIN BY BUDGET

Catholic Health Australia has expressed disappointment that the federal budget was not used to advance much-needed innovation and reform in Australia’s struggling private health insurance system.

With Australians showing dwindling enthusiasm to take out private health insurance coverage, CHA, representing the largest grouping of private not-for-profit hospitals in the country, has been advancing a range of policy reform ideas to make the industry more sustainable. Ideas include:

• Improving and expanding the coverage provided by private health insurers for out-of-hospital care
• Mandating better private health insurance coverage for mental health services, which would likely help attract more young people into the system
• Removing low value private health insurance products from the system and making ‘bronze’ products the minimum level necessary for individuals to avoid paying the Medicare Levy Surcharge (MLS)

“If it’s not in crisis right now, the private health system is certainly headed that way in a hurry,” said CHA Health Policy Director Caitlin O’Dea.

“Giving the private health insurance lobby want they ask for in the short term is not the same as actually reforming the system so it works better for patients, clinicians, and the national interest.

“We have been urging the federal government to bite the bullet on private health insurance reform before it’s too late. If we don’t start funding innovations in out of hospital care and attracting younger people back into private health insurance the whole system just won’t work.

“Selling low value insurance that doesn’t cover anything useful, purely so people can avoid paying the MLS, is great if you’re a private health insurer keen to boost immediate profits. But it’s terrible for the Australian health system.

“This budget was one of the last opportunities we have for meaningful reform. Regardless of who wins the election this year, we need the federal government to grasp the nettle on private health insurance reform.”
Notes to editors: Catholic Health Australia (CHA) is Australia’s largest non-government grouping of health and aged care services accounting for approximately 10 percent of hospital-based healthcare in Australia. Our members also provide around 25 percent of private hospital care, 5 percent of public hospital care, 12 percent of aged care facilities, and 20 percent of home care and support for the elderly.