Value in health insurance: private hospital access

Thursday, 14 February 2019

Value in health insurance: private hospital access
Australians are still accessing private hospitals in increasing numbers, easing the burden on public
hospitals and taxpayers.

According to the latest Australian Prudential Regulation Authority (APRA) data released today, episodes of
care in the private sector rose 1.6 percent in the December quarter, with 940,922 privately insured hospital
treatment episodes.

This continues a trend that began nearly 20 years ago, with no sign of going backwards.

Australian Private Hospitals Association CEO Mr Michael Roff said the numbers show the high value
Australians place on access to private hospitals.

"While it's disappointing to see participation in private health insurance drop, we know it's not because
Australians see low value in private hospital care. Australians recognise the importance of being able to
access care when they need it, with the doctor of their choice and the high quality of care provided in the
private system," he said.

Private health insurance hospital coverage dropped by 12,370 people over the quarter and 64,657 over the
year to date. Participation is now at 44.6 percent, the lowest it has been in 11 years.

Mr Roff said the decline was a concern, but the increasing number of policies being sold with exclusions
and restrictions would have more impact for Australians. Policies that exclude services are now at 56
percent, up 0.3 percentage points over the quarter.

"Policies that limit what people can access by excluding services look like a good idea to the consumer –
they are cheaper and people are often in good health when they sign up to them. But as circumstances
change, people age, develop chronic illnesses, often their policy doesn't keep up.

"Those exclusions then mean Australians aren't covered for services they need, and they are paying for a
policy that won't deliver the benefits they need.

"We encourage Australians to review their private health insurance policy regularly, and if it doesn't suit
their needs, revise it. Make sure when you need to, you can access a private hospital," he said.

Mr Roff said reforms to private health insurance that begin in April should make this process easier.

"APHA has long campaigned for transparent and easily comparable private health insurance policies for
Australians. We hope to see that realised with the Federal Government's reforms," he said.

-ENDSMedia 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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