APHA and CHF recognise medtech commitment to Prostheses List agreement but focus must ‘switch to true reforms’ of private health insurance

MedTech News: Key stakeholders welcomed the Memorandum of Understanding reached between the Federal Government and medical device companies on the Prostheses List reforms and urged the private health insurers to take action on consumer premiums.

Ian Burgess, CEO of Medical Technology Association of Australia (MTAA), joined Health Industry Hub in discussing the details of the policy parameters in MTAA’s four year agreement with the government, a further $900 million price cuts to reduce the gap between the investment for medical devices in the public and private health sectors, the outcomes for private health insurers and the lack of guarantees in the agreement for insurers to pass on these savings.

Mr Burgess said “The government has made ironclad commitments on key policy parameters around Prostheses List reforms, and this will continue to deliver savings for insurers. The focus of governments, irrespective of the election result, must now switch to true reforms of private health insurance and move away from the Prostheses List which is, in reality, just minor noise around what is the fundamental challenge for private health insurance.”

Australian Private Hospitals Association (APHA) CEO Michael Roff, said “Through negotiation and compromise the industry has been able to work with Government to find a result for Australians that retains choice in our health system, and choice is what Australians expect.

“The health insurer lobby group appears to be complaining about the outcome, but after accumulating profits of $1.8 billion during the pandemic, I would urge private health insurers to pass on these new savings to their members,” he said.

Consumers Health Forum CEO, Leanne Wells, said “We acknowledge the work of the MTAA in negotiating this Agreement and the industry willingness to negotiate in the interests of our private health system and patients with private health insurance.

“We know that out-of-pocket costs is already a pain point for many health insurance policy holders. It is important that consumers are protected from increased prices and high out-of-pocket costs for life-changing medical technology.

“The medical device industry has come to the party with an agreement resulting in a projected $900 million in savings. Now it is over to the insurers to do the same by passing on the savings in full via lower premiums,” said Ms Wells.

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