Reform of medical device pricing is critical to affordability and sustainability of Australian health system.
Private Healthcare Australia Chief Executive, Dr Rachel David said the Coalition Government’s ongoing commitment to reform medical device pricing would make health insurance more accessible and affordable for all Australians.
“Today’s announcement that the Prostheses List Advisory Committee (PLAC), will commence targeted reviews of the hip, knee, cardiac and spinal categories, will deliver significant savings to health fund members and Government” said Dr David.
“IPSOS research shows that 84% of health fund members value their PHI but are concerned about ongoing affordability. This announcement demonstrates the Coalition Government is serious about reducing household costs.
“Health funds have given a rock solid commitment to pass on all savings from PL reform to members. This was demonstrated in the recent premium round with the average increase being the lowest in a decade. This next round of reviews will deliver further savings.
“Health funds will continue to work closely with the Government to ensure the sustainability of the PHI industry and funds will continue to introduce efficiencies to keep their internal costs down.
“More than 13 million Australians rely on private health insurance for security and peace of mind, so they can access healthcare when and where they need it. Premium affordability is the major issue for health fund members. Half of all Australians with PHI have an annual income of less than $50,000. They are not wealthy.
“Keeping private health insurance sustainable and premiums affordable ultimately benefits all Australians by keeping pressure off the public hospital system,” said Dr David.
Media contact: Jen Eddy 0439 240 755