Aussies facing fresh $2k price hike

AUSTRALIANS could soon be forking out thousands more for private treatments if a scheme which requires insurers to pay default benefits to hospitals is abolished. In its submission to the federal government’s review of default benefits, Catholic Health Australia said patients would typically pay at least $437 a day more for hospital surgery if the benefits are scrapped or weakened. It said an average five night stay in hospital could cost a patient an extra $2185.

“Out of pocket costs would increase because the current default benefit would be charged to patients instead of being reimbursed by private health insurance,” director of health policy Caitlin O’dea said. Default benefits, which require insurers to pay a minimum amount for treatments, support almost a million treatments every year.

The review, to be conducted by consultancy firm Ernst & Young, is scheduled to be handed back to the government by the end of 2022.

CHA has warned scrapping the arrangement would lead to higher costs and less choice because the current situation allows patients to have treatment in any hospital regardless of whether the hospital has a contract with the patient’s insurance provider. “If default benefits are abolished, then private health insurers would be able to dictate where patients have to go if they want their benefits paid,” Ms O’dea said. “These choices should only be made by patients and their clinicians. Default benefits are a crucial safety net allowing patient choice.” The CHA also raised concerns about the viability of private hospitals should the scheme be dumped. “Some hospitals – which are already facing higher inflation and Covid pressures – would simply become unviable and be forced to close their doors, putting greater pressure on the public system,” Ms O’dea said.