AMA calls for "independent umpire" on private health system

On 7 March, the Australian Medical Association (AMA) launched the private health chapter of its federal budget submission, calling for an independent Private Health System Authority — to provide fit-for-purpose oversight of urgent reforms and ensure the system is meeting expectations of the community.

The AMA’s budget submission also calls for a mandated minimum payout by insurers of 90% as a proportion of their premiums — to encourage greater uptake of private health insurance.

“We’ve seen many devastating closures of private hospital services, and we are glad to see Health Minister Mark Butler this week call for a better funding deal for private hospitals to address these challenges, which we support,” AMA President Dr Danielle McMullen said.

Of the proposed Private Health System Authority, the AMA described it as “an independent body dedicated to overseeing the sustainability and innovation of the sector while giving consumers the confidence in private health insurance products”.

“Australia’s health system is one of the world’s best, in large part due to the critical balance between public and private health care, and we believe an independent authority is key to protecting that balance,” McMullen said.

The AMA said that while it welcomed the Australian Government’s recent efforts at reform — through the Private Health Chief Executive Officer Forum — an authority would also address regulatory gaps in the current system, working as an “independent umpire” to ensure insurance products and services prioritise consumers over shareholders.

“Our health system relies on the private system, where the overwhelming majority of our elective surgery is done,” McMullen said. “Our public hospitals don’t have the spare capacity to cope with a deluge of urgent patients if the private system falters.

“Australians deserve to know they are getting value from their insurance, as well as services when and where they need them. They deserve to know they will be able to access care in their community, see their preferred doctor and not simply be funnelled into a service preferred by their insurer.”

You can read the AMA’s private health chapter of its federal budget submission here, via the AMA website.

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