MORE Australians will be urged to bill their insurer for public hospital care as governments look to the private sector to play a greater role in funding the nation's health system.
While the states are required to provide free public hospital care, with funding from the commonwealth, hospital administrators are actively seeking out privately insured patients in the hope they will bill their health fund.
Federal Health Minister Peter Dutton made clear in a recent speech he expected health funds to cover even more public health services -- potentially including GP visits -- as part of as-yet unspecified plans to make the system more sustainable.
"(Governments) picking up nearly 100 per cent of the cost in the public setting makes no sense for the taxpayer when the patient is prepared to contribute to their own costs," Mr Dutton said last month. "This is where the role of private health insurance is so important."
The NSW government recovered $386 million from health funds for public hospital stays in 2012-13, up from $368m the year before. The Queensland government recovered $311m last year, compared with $280m the year before, and is on track to increase health fund revenue by $38m this year.
As part of moves to an activity-based funding system, the Independent Hospital Pricing Authority will today release key technical data including a formula for determining how much private revenue public hospitals raise. The states convinced the authority to revise the old model after finding it overestimated their private revenue, with the new formula likely to encourage even more health fund billing.
"IHPA will continue to regularly review the use of public hospitals by private patients in order to detect any emerging trends," the authority's chief executive Tony Sherbon told The Australian.
With insurance premiums rising again next month, health funds remain desperate to keep their costs low to maximise profits and the value of policies to members.
Health funds initially sought to limit the public hospital revenue-raising by capping the amount they would pay in accommodation charges. The states responded by seeking an increase in the minimum default benefit but were knocked back by the commonwealth.
Source The Australian
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