Medical device delivers downwards pressure on premiums
The Medical Technology Association of Australia (MTAA), welcomed comments from the Department of Health during Budget Estimates the Prostheses List Agreement signed between the Government and MTAA is directly responsible for delivering downward pressure on private health insurance premiums.
The Agreement signed in October 2017 will reduce private health insurers’ payments for medical devices by $1.1 billion over the next four years. On an aggregate level has removed the differences between public and private pricing.
MTAA has always highlighted the fact that medical devices represent 10% of private health insurers overall costs and therefore a reduction in medical technology benefits would only result in a modest reduction in premium increases.
The other major cost drivers for private health insurance are hospitals which represents 70% and medical services which was the subject of a 4 Corners investigation just this week.
Ian Burgess, Chief Executive Officer of the Medical Technology Association of Australia said:
“We welcome comments from the Department of Health that our Agreement has directly resulted in delivering the lowest premium increase in 17 years, which has been directly attributed to the $1.1 billion cuts in revenue to the medical device industry.
“The medical technology industry believes access to a full range of medical technology is the most valuable component of a private health insurance policy and we’re committed to doing what we do best – assist patients lead healthier and more productive lives.”