Australians are currently experiencing increased costs for private health insurance while receiving fewer benefits, according to a new report by the nation’s leading doctors’ advocacy organization.
The Australian Medical Association (AMA) has just published its latest Private Health Insurance Report Card, revealing a trend where consumers are moving away from gold-tier plans and questioning the overall value of their insurance, even as insurers continue to see rising profits.
The AMA highlighted an urgent need for reform within the sector, with President Dr. Danielle McMullen advocating for the creation of an independent private health authority to guide these necessary changes.
“These insurers have more than enough capacity to enhance the benefits provided to patients,” McMullen stated.
The report also indicated a decline in gold-tier policies as consumers grapple with increasing premiums and general cost-of-living challenges.
Since the COVID-19 pandemic began in March 2020, gold-tier policies have decreased by 360,000, even though the total number of policies has risen overall.
“These trends show that private health insurance is becoming less affordable for many Australians – and we are already seeing the drastic effects of this, with at least 14 private maternity units closing over the past five years,” McMullen said.
“The need for a Private Health System Authority to better regulate the sector and drive long-term reform has never been more crucial. There are too many bodies involved in the regulation of private health – a single, independent authority would provide a unified and coherent approach.”
