Health insurance giving Aussies less value, doctors say

The Australian Medical Association (AMA), an advocacy group for doctors, says private health insurance no longer provides value for money, and wants the government to overhaul the industry. 

The association’s annual Private Health Insurance Report Card, released today, found premium prices had doubled over the past 16 years, outstripping health inflation.

“Australians are paying more for their private health insurance and getting less value in return,” AMA president Dr Danielle McMullen told the ABC. “We’ve seen that private health insurance premiums are going up and up, which will be no surprise to Australians and sadly, our coverage is being narrowed.” 

The AMA wants the government to force insurers to return at least 90% of premiums to consumers, and an independent body established to monitor the health insurance industry. 

But Private Healthcare Australia, peak body for the industry, disagreed with the report, saying the average premium rise had been below the rate of health inflation for the past four years.  

CEO Dr Rachel David noted the industry already had an independent regulatory body – APRA (the Australian Prudential Regulation Authority) – and said a 90% claims ratio would force some health insurers out of business. 

“We have seen insurers collapse in the past. We don’t want to see that again. It will only reduce competition in the sector which affects prices,” Dr David told the ABC. 

Read the ABC story here.  

Trudie McConnochie

Writer and Researcher

Knowledge is power – that’s the guiding principle behind everything Trudie writes, and it’s a philosophy she brings to her work at healthslips.com.au. By breaking down complex information into easy-to-understand blogs and stories, she aims to empower Australians to make the best choices and an informed decision around private health insurance.

Trudie understands firsthand some of the complexity of private health insurance having moved to Australia from New Zealand and having to navigate a vastly different public healthcare system and health insurance structure.

Trudie holds a Bachelor of Communication Studies (journalism major) from the Auckland University of Technology.

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