Premium rise 'considered' but must deliver benefits for Australians

Tuesday, 7 February 2023

Premium rise 'considered' but must deliver benefits for Australians
The Australian Private Hospitals Association (APHA) welcomes the considered approach Health Minister Mark Butler
has taken with the latest private health insurance premium increase, but wants to see measures put in place to
ensure Australians reap the benefits.

Health Minister Mark Butler announced a 2.9 percent premium rise on Monday.

Acting APHA CEO Lucy Cheetham said while the increase was sensible as health costs increase, regulatory bodies,
like the Australian Competition and Consumer Commission (ACCC) should be watching over private health
organisations' shoulders to ensure costs to consumers are minimised.

"We welcome some private health insurers deferring their premium increases off the back of their huge profits
during the pandemic, that seems only fair. But we also need to make sure that consumers are protected, and health
insurers are not using cashbacks (a way of repaying premiums paid during lock downs) to deter consumers from
exercising their right to shop around.

"In addition, The Australian Government also needs to do more to protect consumers making sure they get the
benefits they pay for when they sign up for a health insurance policy. Loopholes and anomalies need to be ironed
out which are costing consumers in out-of-pocket costs and blocking their access to urgent care."
Ms Cheetham said cost pressures for hospitals, as for Australian families, continue to increase and private hospitals
are working with medical device companies to deliver savings for patients and reduce the costs of medical
technology, while still supporting clinical decisions made by doctors.

"Recent reforms of the list that sets prices for devices have given private health insurers an immediate bump of $14
million in savings in the first quarter alone. Savings of up to $900 million are already locked in over four years. This
should be passed on to consumers."
Ms Cheetham also welcomed the focus on health workforce in Minister Butler's announcement but said more must
be done to secure Australia's health workforce.

"Australia completes globally for the health workers we need to address the backlog in elective surgery and the crisis
in mental health. Government must do even more to cut red tape and costs for hospitals sponsoring the skilled
migrant health workers we need to fill urgent vacancies and mentor young Australian graduates coming through."
APHA is calling for:
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•
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A 12-month moratorium on charges to employers for health care related skilled migration.

A 12-month moratorium on Labour Market Testing for clinical professions in acute shortage.

Relaxation of restrictions placed on overseas trained doctors working with private hospitals so that they can
help respond to critical shortages such as psychiatry.

-ENDSLevel 3 /11 National Circ, Barton ACT 2600. PO Box 4502, Kingston ACT 2604. [T] 02 6273 9000 [F] 02 6273 7000
[E] [W] www.apha.org.au [FB] ValuingPrivateHospitals [Twitter] @priv8hospitals
ABN 82 008 623 809

Media contact: Frith Rayner, Director Communications and Marketing, 0413 971 999

Level 3 /11 National Circ, Barton ACT 2600. PO Box 4502, Kingston ACT 2604. [T] 02 6273 9000 [F] 02 6273 7000
[E] [W] www.apha.org.au [FB] ValuingPrivateHospitals [Twitter] @priv8hospitals
ABN 82 008 623 809

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