Grattan Report 'pea and thimble' trick

Tuesday 3 December 2019
Embargoed: 9pm Tuesday 3 December 2019

Grattan Report 'pea and thimble' trick
The latest proposals from the Grattan Institute suggesting changes to community rating for private health
insurance amount to no more than a complex "pea and thimble" trick that on the authors own admission,
will result in older Australian's paying more for their health insurance.

The newly released: 'Saving private health 2: Making private health insurance viable' claims to offer
solutions to save private health insurance, but would actually do damage, says Australian Private Hospitals
Association (APHA) CEO Michael Roff.

"By allowing health insurers to risk rate insurance for those under 55, anyone in this age group who has a
chronic health condition, has previously had surgery or who has a history of mental health issues would
effectively be priced out of the private insurance market, throwing even more demand on the overburdened
public hospital system.

"The proposals rely on illusory savings from the report released last week, when the report authors
calculated billions of dollars of savings based on reducing bed days for private patients – ignoring the fact
the overwhelmingly private hospitals are paid per episode, not per day.

"This report merely compounds the errors and misunderstandings of the private health sector the authors
were so keen to talk about last week.

Mr Roff said there is, however, room for improvement in the current system.

"We have a set of policy measures for private health insurance (the private health insurance rebate, lifetime
health cover and the medicare levy surcharge) that have been effective over time, but are now 20 years
old. The Australian health system as a whole would benefit from some sensible adjustments to these
policies to ensure they are relevant in today's environment.

"The Grattan Institute's complex and convoluted proposals would damage both the public and private
health systems," he said.

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

The Australian Private Hospitals Association (APHA) is the peak industry body representing the private hospital and day surgery
sector. The private hospital sector treats 4.5 million patients a year, including treatment of a third of chemotherapy, 60 percent of all
surgery, 74 percent of all elective musculoskeletal surgery and 80 percent of rehabilitation.

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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