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Health Insurance Premiums Up 8%

Health Insurance Premiums Up 8%

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Old Mar 3rd 2005, 8:57 pm
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Default Health Insurance Premiums Up 8%

http://www.smh.com.au/news/Health/AM...700611815.html

AMA push to take scalpel to gap cover

By Mark Metherell, Political Correspondent
March 4, 2005




The soaring cost of doctors' fees paid by health funds is prompting calls for the removal of gap cover which would expose patients to extra bills.

After this week's announcement of an 8 per cent rise in health insurance premiums, the Australian Medical Association yesterday backed a private hospital leader's call to rethink gap cover.

The cost to health funds of covering doctors' gap charges rose by 19 per cent last year to $800million, well ahead of the 7.4 per cent rise in services provided by doctors.

"Medical gap cover is inflationary," Francis Sullivan, the chief executive of Catholic Health Australia, said.

He said health funds were now typically paying specialists 40 per cent more for operations, when in the past these costs were not borne by the funds, with specialists frequently charging only better-off patients the top rate.
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