Medibank today welcomed the report from the Senate Community Affairs References Committee on the value and affordability of private health insurance and out-of-pocket medical costs.
While customers continue to struggle with affordability the momentum for reform must be sustained.
Medibank’s submission to the committee highlighted the key trends impacting affordability for the 55 per cent of Australians that hold an extras or hospital policy – including:
Total spending on healthcare increasing by approximately 7.1 per cent per annum over the past decade
Indexation eroding the private health insurance rebate (e.g. what was a 30 per cent rebate is now 25.93 per cent)
Claims increasing by an average annual rate of 8.1 per cent over the 10 years to 2015-2016
Medibank has made its own progress on improving affordability for its customers. In 2017 Medibank’s average premium increase was its lowest in 15 years, below the industry average, and it committed to pass on every cent of savings from the Government’s prostheses reforms.
Medibank also made a number of recommendations to the committee, reforms aimed at constraining or lowering costs and maintaining confidence in the private system. The three that Medibank considers most vital are ongoing reform of prostheses pricing, review and reduction of low value care, and enhancing information transparency for consumers.
The committee’s recommendation today for greater consumer transparency via the publishing of fees of individual medical practitioners will be welcomed by Medibank customers.
Quotes from Medibank CEO Craig Drummond
“We’ve made significant progress on improving our products, service and affordability for our customers in the last 18 months – and what the last 6 months has shown us is that when all areas of the sector work together we can make meaningful change for our customers.”
“The reforms announced by the Government in October were a good start, but more needs to be done to protect Australians’ ability to choose public or private.”
“There is enormous capacity for us to work together, it’s never been more important for doctors, hospitals and insurers to work together.”
