CHA submission on default benefits for private health

Ernst and Young recently conducted a consultation on the private healthcare default benefits framework on behalf of the Department of Health and Aged Care. Default benefits are an essential part of the viability of private hospitals. Above all, they are critical to providing patients with choice and affordability in their private healthcare options.

CHA made a submission that highlighted that while hospitals often make only minimal use of default benefits, the protections they provide consumers are fundamental to the efficient and fair functioning of the private health market. There are opportunities to improve the minimum benefits regime, including ensuring that the rate keeps pace with inflation, so that insurers are encouraged to pay for the true cost of their patients care.

Above all, CHA spoke to the opportunity to expand default benefits to out of hospital care by or on behalf of hospitals. This step would improve health outcomes for a variety or care types, reduce costs-per-episode, and hospitals’ involvement would ensure the same high standards of care are required and delivered.

You can read more about the submission here.