Inflated cost of medical devices
Australians have access to one of the best health systems in the world, however new and improved medical technology and treatment options often come with higher costs.
Private Health Insurers are required to pay benefits for products listed on the Australian Government's Prescribed List of Medical Device and Human Tissue Products ('prescribed list') provided to a patient as part of hospital substitute treatment.
Of real concern is the inflated price of many items on the prescribed list, with Australians paying between 30 and 100% more for medical devices and human tissue products than other countries, including the UK and New Zealand.
There are more than 11,000 products on the prescribed list which includes set prices for artificial joints and pacemakers, but also includes items like staples and surgical sponges that should not be considered medical devices and human tissue products.
The exorbitant costs of all these items, which paid for by insurers, is having a direct impact on premiums.
While the Government has committed to reforms that will drive down prices, pressure from multi-national medical device companies has stalled promised reforms being implemented.
We’re actively lobbying for these important reforms to be delivered to shift value away from medical device manufacturers to consumers, so we can continue to offer you affordable health insurance.