Medical devices such as joint replacements,pacemakers and stents are a major cost to health insurers,and the federal government is working on changes to the prostheses list,a database of more than 11,000 medical devices that dictates what health insurers have to pay for them.
In 2019-20,health insurers paid $2.1 billion for more than three million medical devices used to treat Australian patients. The most recent official data shows they represent 10 per cent of hospital benefits paid out by insurers.
The government’s changes to the prostheses list reduced the prices private hospitals pay for items like surgical sponges and knee and hip replacements with the aim of lowering insurers’ costs in the first half of 2022.
Dr David said the cost of medical devices in Australian private hospitals was still about 30 per cent higher than in countries such as New Zealand,the United Kingdom,France and South Africa,despite the government’s changes.
“In some cases,Australians with private health insurance are paying up to five times more for the same generic medical device,” she said.
Medical Technology Association of Australia chief executive Ian Burgess hit back at insurers,saying device manufacturers were reducing prices - with a promised $750 million in savings over the next four years- while insurers reaped big profits.
Bupa,Australia’s largest insurer,will lift premiums by 3.18 per cent and HCF will increase its premiums by 2.72 per cent. HBF costs will go up by 3.62 per cent.
Medibank will raise premiums by 3.1 per cent from September 1,while NIB will raise premiums by 2.66 per cent next year and is considering deferring the increase until July 1.
Two million Medibank and ahm customers with hospital or extras coverage will be eligible for its premium rise deferral.
Medibank chief executive David Koczkar said the pause meant customers would save $1.79 a week on hospital policies and 15 cents on extras,over the year from April.
“While we know no one likes their premium to go up,healthcare costs are continuing to increase at a rate much higher than general inflation,” Medibank chief executive David Koczkar said.
Loading
Medibank would pass on savings from prostheses list reforms to customers,he said,saying the changes could save the industry up to $500 million over the next four years.
NIB managing director Mark Fitzgibbon said the fund’s 2.66 per cent rise was “necessary to keep pace with the rising cost of healthcare treatment” and had factored in anticipated prostheses savings.
Many funds have already given members partial refunds on premiums paid during the pandemic,when lockdowns and elective surgery bans prevented them from using their insurance to pay for medical treatment.