Tasmanian Business Reporter November 2017

6 Tasmanian Business Reporter - NOVEMBER 2017
THOUGHT LEADERSHIP
www.tcci.com.au
Changes improve affordability
BY StLUKES HEALTH CEO
PAUL LUPO
ON October 13 the Federal
Government announced
what most
believe to be the most
significant changes the
industry has seen in the
last 20 years, aimed at
improving affordability
and encouraging greater
youth participation in
private health insurance.
The changes impacting
Tasmanians who
hold private health insurance
over the next 18
months relate to prostheses
reform, which looks
to address some aspects
of affordability, and for
young Tasmanians not
holding cover, through
discounts and reduced
waiting times to access
mental health services.
As a not-for-profit
health insurer, St-
LukesHealth welcomes
the Federal Government’s
efforts to reduce
the cost of prosthesis to
privately insured members,
which is particularly
relevant to Tasmanians.
In 2017, prosthesis
costs represented 14 per
cent of all hospital benefits
paid by all health
funds in Australia, and
in Tasmania due to our
ageing demographic this
cost was 17 per cent.
This reform means that
prices regulated by the
Federal Government and
charged by manufacturers
of medically implanted
devices will fall, with
savings passed directly
on by health insurance
funds to members.
Savings in 2018 are
estimated by the Federal
Government at $188m
with full savings of
$304m annually by 2020.
StLukesHealth sees
this reform as a good
starting point if we are
to address issues around
affordability, but we believe
this needs to go
much further given that
according to official data
for 2014-15, the difference
between what consumers
were forced to
pay for medically implantable
devices in private
hospitals was $729
million more than would
have been the case if
St.Lukes Health CEO Paul Lupo welcomes changes to the industry.
public hospital prices
were applied.
When adding procedures
in day hospitals, as
well as private patients
in public hospitals, the
industry believes this
figure is projected to
approach $1 billion in
2017-18.
Therefore we will continue
to advocate on behalf
of our members to
right this inequity and assist
health insurers minimise
the extent of future
premium increases.
On making health insurance
more attractive
for younger Tasmanians,
the Government’s
reforms allow private
health insurers to offer
discounts of up to 10 per
Overall these
reforms are
a good start
and should
be welcomed
by all
Tasmanians
cent on hospital cover for
18 to 25-year olds.
In response to an increased
demand for access
to mental health services,
changes to waiting
period rules for hospital
cover will mean younger
Tasmanians can more
easily access services
when they most need it.
This need was highlighted
in the 2016
Tasmanian Population
Health Survey that reported
13.7 per cent of
all Tasmanians reported
very high or high levels
of psychological distress,
with most distress
seen in younger Tasmanians
aged 18 to 24
years.
In conclusion, the Federal
Minister’s prosthesis
reform is welcomed,
but it needs to go further
if we are to see sustained
savings put back in the
pockets of Tasmanian
members, and a growth
in the number of Tasmanians
with private health
insurance, which is good
for the sustainability of
the entire health system.
In addition, from April
2019 the minister has allowed
health insurers
to offer younger people
discounts to encourage
participation in private
health, and importantly
from April 2018, greater
access to mental health
services for which there
is a growing demand.
Overall these reforms
are a good start and
should be welcomed by
Tasmanians.
Established in 1952,
St.LukesHealth is a
Tasmanian not-forprofit
health insurer,
with more than 30,000
policies covering
more than 62,000
people Australia-wide.
To join, switch or get
a cover comparison
call 1300 651 988.
170611