Two tier US-style health system

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Private health insurers could be allowed to play a bigger role covering the cost of visits to GP doctors under plans being considered by the Abbott government.

Department of Health officials told a Senate committee they had been asked for advice on changing the parts of the Private Health Insurance Act covering insurers and primary care.

Health Minister Peter Dutton has previously refused to rule out changing the law, which prevents insurers from paying for services like GP visits which are already eligible for Medicare payments.

Department of Health first assistant secretary Richard Bartlett said his team had been asked to provide advice to the government on changes to ­existing private health insurance arrangements.

“Can I ask specifically whether that advice relates to the provision of services to be covered by private health insurance?” Greens Senator Richard Di Natale asked.

“Yes Senator,” Dr Bartlett replied.

Dr Bartlett later attempted to correct his answer.

“I was asked to provide a comment about whether advice had been provided on primary care and private health insurance, I said I had. That is all I said. It went no further and I can go no further,” he said.

As late as last week, Mr Dutton told the National Press Club he believed ­private health insurers could deliver savings to the government and better outcomes for patients by intervening in the development of chronic health conditions at an earlier stage in primary care.

“I think if you’ve got a willing doctor, you’ve got a willing patient and a willing insurer under the current legislative arrangements that we have, I think there is an opportunity for us to invest in what is effectively is great prevention,” Mr Dutton said.

The Australian Financial Review has been told there is no imminent announcement planned.

A number of private health insurance companies, including Medibank Private, have lobbied the health minister to change the law to allow them access to the lucrative private health insurance sector.

The issue has been dragged onto the political agenda by a controversial trial conducted by Medibank in Queensland.

In the trial GP clinics are incentivised to guarantee Medibank policyholders will not be charged for their visits.

Mr Dutton’s office is watching the outcome of the Medibank trial closely.

Dr Di Natale said there was little doubt in his mind the government was on track to allow private health insurers to cover general practice payments.

“Dutton has said he clearly believes in a greater role for private health insurers, and you now have co-payments and a Medibank trial. We know advice has been provided by the Department on the role of insurers in primary care,” Dr Di Natale said. “When you put the pieces of the puzzle together, we are speeding full force into a two-tier US-style health system.” Opposition health spokeswoman ­Catherine King said the ­government was planning to “privatise” the health system.

Source: Australian Financial Review