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Health minister flags insurance overhaul

9/10/2008 1:00:00 AM
Consumers could be armed with more information to help them shop around for the best private health deal under changes flagged by the Federal Government.

The Government already publishes the average premium rises across all health funds. But Health Minister Nicola Roxon said yesterday she was considering whether consumers would benefit from knowing the average rise of each fund.

''This would enable consumers to assess their own fund's performance against alternatives and could help drive more competition,'' she said.

Australian Health Insurance Association chief executive Michael Armitage said, ''The industry welcomed the minister's announcement to extend arrangements enabling young adults up to the age of 25 to remain covered by their family policy.''

''It is also good news that the minister has committed to improving the rate of informed financial consent. The incidence of patients receiving surprise gap fees remains too high.''

Ms Roxon said the Government was considering cracking down on doctors who failed to forewarn privately insured patients about out-of-pocket fees.''[And] making more information available about the average charges for dental services might help consumers see how their providers measure up against others.''

She saw scope for improvement in the scheme that allowed private health insurers to cover chronic disease management and prevention programs.

''A year in and I don't think it is unfair to say that the promise of Broader Health Cover reforms has not yet translated sufficiently into practice,'' she said.

''I am interested in a discussion on the kinds of extra services we can agree on to promote health and wellness and could include things like quit smoking programs or other healthy activities.'' The latest survey shows 55 per cent of ACT residents have private health insurance, the highest in the country.

The Australian Health Insurance Association is a critic of the Government's changes to the Medicare levy surcharge. The Senate has blocked efforts to lift the income thresholds.

Ms Roxon said the Government was prepared to consider addressing regulatory restrictions impeding quality, value for money products being offered to consumers.

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