The AMA's latest Private Health Insurance Report Card is out now, and it highlights the need for reform.
The AMA's Private Health Insurance Report Card 2024 sheds light on major issues in the private health sector, including the overall complexity of choosing the right health fund and level of cover.
Releasing the report card on Wednesday , AMA President Dr Danielle McMullen said choosing private health insurance is a confusing experience, with rebates for identical procedures varying greatly between insurers.
The report card confirms that over the past five years, net insurance profits (including net private health insurance investment income) have risen much more sharply than benefits paid to patients.
"While net profits for insurers have increased by almost 50 per cent, the patient rebate for medical services has increased by just over 10 per cent," Dr McMullen said.
"Our analysis shows 84 per cent of hospital insurance policy premiums were returned to patients in the form of rebates and other benefits for hospital treatment last financial year - a small improvement from the previous financial year, but still well below where it should be."
We are calling on the federal government to mandate insurers to return at least 90 per cent of private health insurance premiums back to consumers in the form of benefits. We are also calling for an independent private health system authority to drive long-term reform, provide appropriate regulation and ensure patients get real value for money.
"Urgent reform is needed, as patients are finding it increasingly difficult to access care under their private health insurance policies," Dr McMullen said.
