Causes of Healthcare Costs

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Healthcare costs steadily rise by 4.7% a year.

• Healthcare costs rise for several reasons including an ageing population, inflated costs of medical devices and increasing hospital accommodation costs.
• Health funds want to work with the entire health industry to bring healthcare costs down, to put downward pressure on premiums and make cover more affordable.
• Some things are harder to change than others, but we believe that cracking down on overpriced medical devices, fraud and low value care will deliver real financial benefit to consumers in the form of lower premiums.
• The Government must continue the successful reform of medical device pricing so health funds no longer pay 2-5 times more for medical devices than that charged to public patients, and in equivalent countries around the world.
• Improve MBS compliance – eliminating fraudulent claims could deliver savings of more than $1 billion to the Government and to private health consumers through lower premiums.
• Evidence-based healthcare will deliver better health outcomes for patients and value for consumers. Every dollar of waste and every episode of inappropriate practice threatens the sustainability of private health.
• Capping premiums won’t stop rising healthcare costs.

• The costs of healthcare are too high. Healthcare stakeholders need to work together to reduce costs and in turn reduce premiums. #auspol #PrivateHealth [INSERT PIC: Image: Costs 2]
• Premiums go up because healthcare costs go up. Private health insurers have limited control over healthcare costs. #PrivateHealth [INSERT PIC: Image: Costs 1]
• Reducing healthcare costs mean more Australians will be able to afford private health cover and avoid public hospital wait times. #PrivateHealth
• Healthcare costs are rising at unsustainable levels. The gov must crack down on overpriced medical devices, fraud and low value care. #auspol #PrivateHealth [INSERT PIC: Image: Costs 1]
• Capping premiums won’t stop rising healthcare costs. #auspol #PrivateHealth [LINK – https://www.theaustralian.com.au/business/health-insurers-in-pitch-to-alp-on-reforms/news-story/85f499bb03b7db15018ed716e522f5cf ]
• The priority for healthcare reform should be to keep #PrivateHealth insurance premiums affordable for consumers #auspol [LINK – https://www.theaustralian.com.au/national-affairs/health/health-insurers-fear-labor-plan-blowout/news-story/6b32b897d500ba2baa20cd8c792bae0a ]

• We must work to bring costs of healthcare down, so people like Taryn can continue to afford their private health insurance. Taryn learnt how valuable her private cover was when her 3-year-old son developed cataracts over both of his eyes, rendering him blind. During this time, Taryn was grateful her cover meant waiting periods were short and that she was given the freedom to choose the best surgeon available, alleviating some of the stress placed on her family. She’s also thankful for the support with the ongoing costs involved, including her son’s glasses, which require changing several times a year. Read more about Taryn’s story here: https://www.privatehealthpublicbenefit.com.au/2018/06/28/taryns-son-developed-cataracts-over-both-of-his-eyes-rendering-him-blind/
• Premiums go up because health funds are paying for more healthcare and because healthcare costs go up. Private health insurers have limited control over healthcare costs. #PrivateHealth [INSERT PIC: Image: Costs – 1]

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• Costs 1 – Healthcare costs rise because of [Insert PIC: Image: Costs 1]
• Costs 2 – Healthcare costs are rising by [Insert PIC: Image: Costs 2]

Want to customise these to your fund’s branding? Download the Adobe Indesign files here:

• Costs 1: https://pha.madeneat.dev/wp-content/uploads/1816FTI-FB-Health-care-costs-rise-because_GENERIC.indd
• Costs 2: https://pha.madeneat.dev/wp-content/uploads/1816FTI-FB-Healthcare-costs-rising_GENERIC.indd

[Health fund] says urgent reform needed to tackle rising costs of healthcare

Healthcare costs are rising steadily by 4.7% a year – putting unsustainable pressure on premiums.

Private health insurers are unable to control the costs of healthcare, but are willing to work with government and industry to crack down on overpriced medical devices, fraud and low value care.

“Addressing the issue of low value care will deliver real financial benefit to consumers in the form of lower premiums,” said [CEO, Health Fund].

We want to ensure our members are getting value for money and to reassure them their premiums are not being spent on low value treatment.

Last year, [health fund] paid out [$x] to cover low value care tests and treatments.

Under legislation health funds are obliged to pay for medical treatments covered by the Medicare Benefits Scheme (MBS). The government is currently reviewing 5,700 items on the MBS, to ensure they are aligned with contemporary clinical evidence and practice and improve health outcomes for patients. This Review will not only highlight the importance of clinical best practice and improve patient care, but importantly reduce waste across the health system.

“We will work with Government to ensure there is compliance with the MBS schedule. It is an excellent focus on evidence-based healthcare and will be supported across the health sector,” [CEO, Health Fund].

[Name] said the industry was working hard to crackdown on fraud.

“The only way to put downward pressure on premiums as utilisation goes up is to address wasteful input costs. These include fraud, over servicing, inflated prices for medical devices and low value care,” he/she said.

[NAME] said Health funds were keen to work with Medicare to improve payment integrity. Doing so would eliminate $45 million in non-compliant payments every year. [Source: McKinsey]