Out-of-pocket costs for health care must be addressed

Painaustralia welcomes a report by the Consumers Health Forum (CHF) that highlights the need for reform in our private health sector.

The CHF’s national Out of Pocket Pain survey, which drew 1,200 responses, showed out-of-pocket medical bills exceed $10,000 for certain chronic conditions.

Australians who have paid regular installments to private health insurers over many years are often shocked to find that they are hit with hefty medical bills when they require treatment.

There were reports of thousands of dollars worth of fees required prior to surgery and lack of transparency around anaesthetist costs and fees and charges applied by individual specialists and allied health professionals as well as comparison rates.

In Painaustralia’s submission to the inquiry into the value and affordability of private health insrance and out-of-pocket medical costs, we highlighted the inadequate rebate structure provided by private health insurers for people with chronic conditions who require ongoing allied health services and the futility of focusing on surgical interventions when, for most people with chronic pain, multidisciplinary pain management is often the most effective option. 

The CHF report is associated with a Ministerial Advisory Committee on Out-of-Pocket Costs, formed to to address issues of transparency around medical fees and charges and consider options to improve the current situation.

The Committee will provide advice to the Minister for Health on possible reforms covering:

• best practice models for the transparency of in-hospital medical out-of-pocket costs, and associated medical services in the community;
• legislation and regulatory barriers to consumer transparency of out-of-pocket medical costs;
• the implementation of best practice models; and
• other related issues as directed by the Minister.

Currently there is no opportunity for organisations or members of the public to provide comment into these investigations.