Posted by Michael Wonder on 06 Jun 2018
Private health insurers already using Labor policy as a threat in negotiations
6 June 2018 - Health insurers are already using the threat of Labor's cap on annual premium rises to apply pressure in contract negotiations with private hospital groups, underlining the risk that patients will be hit with higher out-of-pocket fees as both sides try to protect profits.
Medibank Private chief executive Craig Drummond told The Australian Financial Review on Tuesday that the health insurer planned to crimp what it pays to companies that provide medical care to its 3.7 million members to share the pain of the proposed 2 per cent cap on premium rises.
Although an election date has not been set and the proposal is far from being policy, Australian Private Hospitals Association CEO Michael Roff said health insurers were already turning the screws in contract negotiations that set the price for a hospital stay or use of a surgery theatre.
