Private Health: Who Benefits?

[vc_row][vc_column][vc_column_text]In quoting the statistic that, currently 60% of surgeries that are performed in private hospitals, AMA President, Tony Bartone, emphatically answered the question as to whether a private component to the healthcare system is needed. Even with this level of activity, public hospitals are ‘fighting a losing battle when it comes to waiting lists and resources’.

Dr Stephen Duckett, Director Health Program, Grattan Institute, offered three policy options for the Government to (1) directly support private health care, (2) support via private health insurance (PHI) or (3) do not support at all (the ostrich approach).

During the panel session, Dr Rachel David, Chief Executive Officer of Private Healthcare Australia, contended that if Government incentives to join a health care fund were removed, the savings would ultimately be spent in servicing the increasing demand on the public health system. Dr Duckett has modelled behaviour associated with PHI and has found that if the, now means tested, 30% premium rebate was removed, the over 65 year old cohort would continue to buy coverage, as they get value. This was echoed by Dr Bartone who noted that while young people are dropping out of PHI; older Australians are commencing cover despite the Life Time Health Cover loading as they are claiming above the average.

Despite the incongruence of taxpayer funded support for businesses that operate to make a profit, Dr Bartone felt that health funds should return more revenue to members. “There must be a minimum amount returned to the health consumer for every dollar going in,” he said. 

The perverse impact of Government attempts to control costs by means testing and freezing rebates, resulting in higher out-of-pocket charges being borne by patients, was not lost on the speakers.

Although Bartone insisted that increased transparency of costs and fees will help promote efficiency and build confidence in the healthcare system, despite being inundated with information and data, the differing viewpoints lead to the conclusion that health is contestable. Health numbers matters.

Interestingly, the raft of changes to simplify PHI announced by Minister Hunt in 2017, were not touched upon. Funds have until April 2020 to introduce the reforms including coverage by tiers (Gold, Silver, Bronze or Basic).

PHI challenges are multifactorial, and as such we need all stakeholders to contribute to efforts to find solutions. Even if we have a good, not perfect healthcare system, reform is necessary and we shouldn’t be afraid of pursuing it.[/vc_column_text][/vc_column][/vc_row]

Edwards Lifesciences Foundation awards almost $250,000 in grants

[vc_row][vc_column][vc_column_text]At Edwards Lifesciences, we believe that through our actions we will become trusted partners with customers, colleagues, and patients – creating a community unified in its mission to improve the quality of life around the world.

To help facilitate the event we were pleased to welcome both our Federal Member of Parliament, John Alexander OAM, MP and NSW Parliamentary Secretary for Health, the Hon Natasha Maclaren-Jones MLC.

Since its inception, the Foundation has gifted more than $87 million to non-profit organizations across the globe. The focus is on supporting underserved heart valve and critically ill patients, as well as strengthening the communities in which Edwards employees live and work.

This year the Foundation awarded over $14 million to charities in over 40 countries. Originally estimated to reach 1 million underserved people by 2020, the Every Heartbeat Matters community exceeded the goal early, and, in September 2018, raised it to 1.5 million people.

First time recipient of funding from the Foundation, Red Dust, an Indigenous organization that believes good health is the key to a bright future and that health outcomes can only be made possible through a two-way exchange with communities.

CEO of Red Dust, Scott Stirling said:

“We thank and welcome the Edwards Foundation for our work to enrich lives, improve health and strengthen the future of Indigenous youth and families. The funding will allow us to work in partnership with Edwards and with remote communities to improve health knowledges through our Healthy Living Program, especially around rheumatic heart disease.”

HeartKids, the only charity funding vital research and providing family support to the eight babies born every day with Congenital Heart Disease (CHD) was the recipient of almost $11,000 from the Every Heartbeat Matter grant. Currently, over half of all beds in paediatric intensive care are filled with these babies and CHD is the biggest killer of babies in Australia, sadly four lives are lost every week.

Director of HeartKids, Jayne Blake said:

“The Edwards Lifesciences Foundation have been enormously generous supporters of HeartKids for many years, in the form of donations, grants and support of HeartKids campaigns and events.

“This grant will be used towards the national CHD Registry that is being developed, to generate the knowledge needed to better understand the true burden of the disease.”

Member for Bennelong, John Alexander OAM, MP said:

“We’re very lucky in Bennelong to have companies like Edwards Lifesciences who are so keen to make generous contributions to the community. The organisations we saw last week represent some of the best causes in Australia, and it is wonderful to see them supported in this way.”

Managing Director of Edwards Lifesciences ANZ, Pat Williams said:

“Our commitment to charitable giving and participation in philanthropic causes is one of the defining elements of our culture. We feel fortunate to be able to support many health- and community-focused programs through grants to non-profit organizations from the Edwards Lifesciences Foundation. Locally we’re proud that 97% of our employees undertook volunteering activities in our communities this year with an aspiration of 100% participation each year.”

Highlights from the charities include:

  • National Heart Foundation of Australia – the funds will go toward rolling out its new online screening capacity to help improve patient pathways to treatment.
  • Pancare Foundation – expand its Patient Support Days to patients and their carers who are newly diagnosed, going through treatment or just post treatment so they are receiving the very best care and information at the early stage of their diagnosis.
  • Ronald McDonald House, Western Sydney – open 365 days of the year it allows families to remain connected, and parents/carers can better communicate with their child’s medical specialists. Families form relationships with other parents going through similar experiences with staff and volunteers providing invaluable personal support throughout their stay.
  • The Exodus Foundation – the funds will help towards preparing up to 800 healthy and nutritious meals for Sydney’s homeless and marginalised every day of the year and this will increase to 2000 on Christmas Day.
  • Wairoa School – to replace the current person hoist in the school’s hydrotherapy pool area to enable students and community members who have physical disabilities to enter the pool in a safe and dignified manner.
  • Youth Off The Streets – the funds will go towards the National Scholarship Program to provide financial and practical support to one of 22 disadvantaged students lacking support networks and resources to fulfill their potential.
  • Auckland City Mission – the funds will go towards the Calder Health Centre to bring health care services to some of the most marginalised Aucklanders, many of whom have extremely high and complex health needs.
  • Friends of Fiji Heart Foundation – carries out its annual mission with a team of approximately 70 to 90 medical professional who volunteers their time from New Zealand and abroad to provide free open-heart surgery to poor and needy individuals of Fiji.
  • Open Heart International – As a result of a 25-year investment, there are now PNG surgeons and anaesthetists who are able to provide some independent cardiac surgery. The funds will go towards helping with a new 5-year phase to expand the scope of capacity to include congenital, coronary grafting, and valve replacement surgery, as well as interventional cardiology.
  • Red Dust – the funds will go towards promoting rheumatic heart disease awareness and screening in 5 remote communities over 1 year. The community-as-family model of programming engages Aboriginal youth and families and is developed and delivered in partnership with local elders and community organisations, ensuring cultural authenticity, complementarity with existing services and opportunities for local training and employment.

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World AIDS Day, 1 December 2019 – More support for Australians living with HIV

[vc_row][vc_column][vc_column_text]It is a day for people to show their support for people living with HIV and to remember and honour those who we have lost.

In the 2019–20 Budget, the Morrison Government invested $45.4 million to implement Australia’s five National Blood-Borne Viruses (BBV) and Sexually Transmissible Infections (STI) Strategies.

These strategies will make a deep and profound difference in reducing the health impacts and stigma of BBV and STI, including HIV.

Today, I am pleased to announce that our Government will provide additional, ongoing support for people with HIV and other BBV and STI’s by extending funding to six national peak organisations, providing almost $3 million for 2020-21.

In addition, from 1 December 2019, Australians living with HIV will save more than $8,500 a year with the listing of a new combination medicine on the Pharmaceutical Benefits Scheme (PBS).

It is estimated that 850 Australians with HIV will benefit from the listing of Dovato® (dolutegravir with lamivudine) on the PBS, which will provide more choice for them in how they can manage their HIV.

Effective once daily treatments such as Dovato and other new medicines can control the virus so that people living with HIV can enjoy long, healthy and productive lives.

With the PBS subsidy, people living with HIV will pay just $40.30 per script, or $6.50 with a concession card for Dovato®.

Australia continues to be a world leader in the response to HIV. The number of new HIV diagnoses today is at its lowest in nearly 20 years.

Our success is built on a model of partnership between government, people living with HIV, community based organisations, health professionals and researchers.

We are seeing more people tested for HIV and initiating treatment for HIV. There are also more people living with a suppressed viral load. In addition, improved access to HIV prevention methods, including the PBS-listed pre exposure prophylaxis (PrEP), helps reduce the number of new HIV diagnoses.

We are also looking to address stigma and discrimination.

The Eighth National HIV Strategy 2018-22, guides our partnership approach over the next four years to virtual elimination of HIV transmission by 2022.

We aim to be one of the first countries in the world to eliminate new HIV transmissions.[/vc_column_text][vc_zigzag][vc_row_inner][vc_column_inner width=”1/4″][vc_single_image image=”4221″ img_size=”full”][/vc_column_inner][vc_column_inner width=”3/4″][vc_column_text]

ABOUT THE AUTHOR

The Hon. Greg Hunt MP is the Minister for Health, the Minster Assisting the Prime Minister for the Public Service and Cabinet, and the Federal Member for Flinders.[/vc_column_text][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row]

75% of Australians want health funds forced to use profits to lower prices

[vc_row][vc_column][vc_column_text]The results are from a YouGov survey of over 1000 Australians – released today – that also found the majority of respondents (65%) thought a price increases over 3 per cent next year – twice the inflation rate – was “not in the public interest”.

Ian Burgess, CEO of the Medical Technology Association of Australia, who commissioned the poll, said the public clearly supported the Government “standing strong” in the face of insurer threats to retaliate by blocking patient access to critical medical devices and refusing to reimburse their claims.

“The ‘Big 3’ corporate health insurers – Medibank, Bupa and NIB – have not paid once extra cent for medical devices in the past two premium years, despite raising premiums twice-inflation and pocketing nearly $1 billion in profits between them,” Mr Burgess said.

“The Federal Government’s agreement with MTAA has successfully delivered more Australians more access to more medical devices at less cost to insurers – and premiums should be going down, not up, as per the Minister’s direction today.

“Insurers are threatening to block patient access to the very medical devices that hold our world-class health system together.

“Thousands of patients and surgeries across Australia – from bone breaks, to caesareans, to transplants – will be instantly impacted by this insurer cash grab and cause chaos in hospitals across the country, including public hospital waiting lists.”

The Federal Government is currently assessing private health insurance premium submissions for next year.

Under Federal legislation, the Health Minister must sign off on an insurer’s proposed increase “unless satisfied that a change would be contrary to the public interest”.

Last Monday, MTAA called for the Federal Government to reject any premium increases about 3 per cent – twice inflation – after analysis of official APRA data on Monday proved medical device costs to health insurers had gone backwards over the past two premium years – and exposed insurer claims they were pushing up premiums as a “sham and a scam”.

The MTAA’s Agreement with the Federal Government has already saved insurers a total of $390 million off the cost of medical devices and is on track to exceed the $1.1 billion in total expected savings.

 Poll Results – Private Health

  • Three quarters of Australians surveyed (76%) believe the Federal Health Minister should use their power to reject insurer premium increases over 3%.
  • Three quarters of Australians surveyed (73%) are in favour of the Federal Health Minister forcing private health insurers to use some of their $1 billion in profits to keep premium increases under 3% next year.
  • The majority of Australians surveyed (66%) do not believe a health fund premium increase over 3% next year is in the “public interest”.
  • Half of all respondents (49%) held private health insurance in line with current national population
Source: All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 1,078 adults. Fieldwork was undertaken between 14th-15th November 2019. The survey was carried out online. The figures have been weighted

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Corporate Health Insurers Cry Poor – Government Not Buying It

[vc_row][vc_column][vc_column_text]Following yet another anticipated move by private health insurers to, again, increase premiums on hard working Australian families, the Federal Government has rebuffed the call in its strongest terms yet.

The Government has announced it will place the consumer at the forefront of its plans to lower the cost of private health insurance and stem the avalanche of Australian families leaving their private health policies.

The announcement comes as the Sydney Morning Herald (SMH) reported the results of a YouGov poll  of 1000 people which suggested that “three-quarters of Australians want the minister to ‘force private health insurers to use some of their $1 billion in profits to keep premium increases under 3 percent next year.’”

The lobby group representing the corporate insurers, Private Healthcare Australia (PHA), told the SMH private health insurers were battling rising costs that were squeezing its profit margins – with some funds in “negative territory” – making the minster’s request for a 3 percent rise “incredibly challenging”.

The PHA has been quick in its attempts to shift blame by attacking other industries, including medical devices companies, despite millions of dollars in savings being delivered by devices companies to corporate insurers through its landmark ‘agreement’ with the Federal Government.

Since 2016, the agreement has delivered price cuts to thousands of implants like heart pacemakers, knees, hips and eye lenses to corporate insurers.

However, despite these savings, the Big 3 corporate health insurers – Medibank, Bupa and NIB – have continued to raise their premiums at twice the rate of inflation over the same period, and rake in profits of nearly $1 billion between them.

Last week PulseLine published a story covering the medical device industry’s calls to reject ‘Big 3’ health fund increases over 3 percent, following the release of data from Australian Prudential Regulation Authority (APRA).

Federal legislation requires corporate health insurers to submit their premium increases in November each year for APRA. The legislation also gives the government the power to reject premium increases that are not in the “public interest”.

Medical Technology Association of Australia CEO, Ian Burgess, said “any attempt by insurers to claim premiums should rise by over 3 percent next year – twice the rate of inflation – is a sham and a scam”.

“It’s in the public interest for APRA to ensure the Big 3 health insurers pass on every cent of these medical devices saving to their customers through lower premiums as promised – and throw every book available at them if they don’t.” Mr Burgess said.

Minster Hunt has written to the 20 corporate health insurers rejecting their increase request, and also rejected their claim they couldn’t afford to no increase premiums on Australian families by an average of 3 percent.[/vc_column_text][/vc_column][/vc_row]

A Conversation with Marene Allison

[vc_row][vc_column][vc_column_text]Prior to 2010, Marene was Chief Security Officer and Vice President for Medco, where she oversaw all aspects of security and regulatory compliance. As head of Global Security at Avaya, Marene secured the World Cup network in Korea and Japan in 2002. She also worked as Vice President of Loss Prevention and Safety for the Great Atlantic and Pacific Tea Company. Before that, Marene was an FBI Special Agent, working on undercover drug operations, terrorist bombings, and a mock nuclear terrorism exercise.

Marene has a Bachelor of Science degree from The United States Military Academy at West Point in the first class to include women. She has served in the US Army in the Military Police, as well as on the Defense Advisory Committee on Women in the Services and the Overseas Security Advisory Committee. Marene is a founding member of West Point Women and currently serves on their Board of Directors. Marene is married, has a son, a wonderful daughter-in-law and grandson, and lives in Bucks County, Pennsylvania.[/vc_column_text][/vc_column][/vc_row]

$55 Million Investment To Give New Hope To Australians Living With Rare Cancers

[vc_row][vc_column][vc_column_text]Through its landmark Medical Research Future Fund, the Federal Government is investing $55 million to research rare cancers and diseases.

Under the round, the Government is inviting Australia’s best and brightest researchers to apply for grant opportunities. The unprecedented clinical trials activity is aimed at developing new drugs, devices and treatments, and ultimately saving lives.

Of the $55 million:

  • $15 million is for research into reproductive cancers, including cancers located in the cervix, uterus, fallopian tubes, endometrium or ovaries in women, and cancer of the testicles in in men.
  • $5 million is for Childhood Brain Cancer clinical trials, with an aim to double the 10- year survival rate of childhood brain cancer, improve the quality of life of children living with brain cancer, and ultimately find a cure to defeat childhood brain cancer.
  • $20 million will address an increasingly significant burden of neurological disorders including Duchenne Muscular Dystrophy, spinal cord injuries and Autism Spectrum Disorders.
  • $15 million will address other significant gaps in current research and/or knowledge in rare cancers, rare diseases and areas of unmet medical need.

In Australia, it is estimated more than 40,000 Australians are diagnosed with a rare or less common form of cancer. For many, there is a lack of evidence-based information to inform treatment options and support networks.

While survival rates for high incidence cancers have improved, those for rare cancers have remained relatively static.

People living with a rare disease face significant challenges including diagnostic delays, lack of available treatments and difficulty in finding the appropriate care.

For more information on the grant round, including application dates and criteria, go to GrantConnect at www.grants.gov.au[/vc_column_text][/vc_column][/vc_row]

Devices Industry Calls To Reject ‘Big 3’ Health Fund Increases Over 3%

[vc_row][vc_column][vc_column_text]Analysis of official APRA data confirms the overall cost of medical devices to private health insurers has gone backwards over the past two premium years.

Medical Technology Association of Australia CEO Ian Burgess said this demonstrated the success of its landmark agreement with the Federal Government, which had delivered health funds price cuts to thousands of implants like heart pacemakers, knees, hips and eye lenses since 2016.

However, despite these hundreds of millions of dollars in savings, Mr Burgess said the ‘Big 3’ corporate health insurers – Medibank, Bupa and NIB – had all continued to raise their premiums at twice the rate of inflation over the same period, while recording profits of nearly $1 billion between them.

“Insurers have not paid one extra cent for medical device claims by their customers over the past two premium years,” Mr Burgess said.

“These findings prove the Federal Government’s agreement has successfully delivered more Australians more access to more medical devices at less cost to insurers – and premiums should be going down, not up.

“Any attempt by insurers to claim premiums should rise by over 3 per cent next year – twice the rate of inflation – is a sham and a scam.

“It’s in the public interest for APRA to ensure the ‘Big 3’ health insurers pass on every cent of these medical devices savings to their customers through lower premiums as promised – and throw every book available at them if they don’t.”

Mr Burgess said the APRA data also confirmed insurer criticisms about increases in the number of people claiming medical devices (volumes) were just a “deliberate distraction” from their planned premium hikes.

“Private health funds have run an orchestrated misinformation campaign misleading their customers, investors and government on medical device costs and casting doubt on the integrity of the dedicated healthcare professionals that use them,” Mr Burgess said.

“Unless APRA draws a line in the sand now, health insurers will be a given the green light to walk all over their customers, suppliers and taxpayers for another decade.”

APRA’s official data shows the total cost of medical devices paid by health insurers fell from $2,090,886,035 in the 2016 Premium Year (pre price cuts) to $2,077,873,733 in the 2018 Premium Year (post price cuts).

Even more significant is the fact growth in total medical device costs paid by insurers fell from 13% in the two premium years pre price cuts (2014-2016) to -1% in the two premium years post price cuts (2016-2018).

Today’s findings come after recent analysis in August 2019 revealed MTAA’s Agreement with the Government has already saved insurers $314 million and was on track to exceed the $1.1 billion in total expected savings.

An AlphaBeta report – also released in August 2019 – uncovered nearly $1 billion in additional savings in the health system outside of medical devices that, if passed on by insurers, could help reduce private health premium growth by up to 20 per cent by FY2022.

Federal legislation requires insurers to submit their premium increases in November each year for scrutiny by the Australian Prudential Regulation Authority (APRA).

The same legislation also gives the government power to reject private health insurer premium increases that are not in the “public interest”.[/vc_column_text][vc_separator][vc_column_text]

Table 1: Total Medical Device Costs to insurers pre and post medical device price cuts

 

 Total

Device Cost Growth To

Insurers

Insurer Premium

Growth

Pre Govt Device Price Cuts (Premium Years 2017 & 2018) 13% 10.40%
Post Govt Device Price Cuts (Premium Years 2017 & 2018) -1% 7.20%

 Source: APRA Operations of Private Health Insurers Annual Report 2018-19 Source: Department of Health (insurer premiums 2015 – 2019)[/vc_column_text][/vc_column][/vc_row]

Digital Health the Focus at NBN Workshop

[vc_row][vc_column][vc_column_text]CEO Dr Gabrielle O’Kane said that the workshop, which was attended by Minister for Communications Paul Fletcher, brought together key stakeholders including health practitioners, advocates and consumers.

“Digital health is key to delivering quality health care services to people in rural Australia in the 21st century,” said Dr O’Kane. “But while digital health provides many opportunities for practitioners and consumers, there are still significant challenges to overcome.”

“That’s why today’s workshop brought together people from across the sector who have an interest in digital health.

“There is lots of innovation happening in this space. But there are also many barriers that stand in the way, including poor connectivity and lack of affordability. Service designs need to fit the diverse needs of the 7 million people living in rural and remote Australia, and not just those in the major cities.

“It’s heartening that the Minister, Paul Fletcher, attended the workshop and indicated that the Federal Government was committed to improving digital health connectivity. The rural health sector will continue to work with the Minister and the Government to make sure that happens.

“There is important work taking place, such as My Health Record, but more needs to be done to ensure that people in rural Australia are included and have the same access to quality health services as people in the major cities.

“We need national coordination and collaboration in order to improve quality health care for people in the bush. The National Rural Health Alliance will continue to work with government to make this happen and today’s digital health workshop was an important first step.”[/vc_column_text][/vc_column][/vc_row]