Author: Team

PRIVATE HEALTH INSURANCE REFORM – WILL IT DELIVER?

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[vc_row][vc_column][vc_column_text]The PHMAC was tasked with developing easy-to-understand categories of health insurance, standard definitions for medical procedures across all insurers for greater transparency and simplified billing, as well as ensuring private health insurance meets the specific needs of consumers living in rural and remote Australia.

While the PHMAC’s measures are expected to be in place by next year’s premium increase, scheduled for 1 April 2019, the questions on everybody’s mind is: will this reform help to deliver lower premium increases or will it only serve to heighten people’s frustration with private health insurance companies?

Consumer advocacy group CHOICE has urged the federal government to scrap its plan to allow health insurance companies to offer discounts to people aged 18 to 29, arguing the move will lead to health funds luring young adults into buying low-value ‘junk policies’.

“While the cost of private health insurance is one of the top concerns that needs to be addressed, cost cannot be looked at in isolation. Discounted private health insurance cover isn’t worth it if you don’t need the cover in the first place,” says CHOICE Campaigns and Policy Team Lead, Katinka Day.

“A cheap policy that adds little or no tangible value is a poor outcome not only for the individual, but also for taxpayers who are subsidising a private system.”

This was reinforced by former chief of the health insurers lobby group and board member of a not for profit health fund Russell Schneider in his submission to the Senate inquiry. He claims that unless 100,000 extra young people buy health insurance, premiums will rise for everyone else to cover the discounts.

The Consumer Health Forum remains concerned the discounts on health insurance premiums for young people under 30 will erode the community-rating principles and further entrench a two-tiered system.

“Such changes to health insurance rules seem designed largely in the health funds’ interests to shore up declining member numbers but go nowhere far enough to respond to the frustration and concerns many consumers have about their health cover,” the CEO of the Consumers Health Forum, Leanne Wells, said.

“The latest statistics showing a significant year-on-year overall fall in health insurance members, particularly the 5.3 per cent drop among those in their 20s, highlights the need for a searching examination of Government assistance and regulation of health insurance.”

The Medical Technology Association of Australia supports the Government’s private health insurance reforms and its intent to address the issues of value, affordability, simplification and transparency of health insurance for Australian consumers.

But its submission focused on concerns around the product categorisation issue of gold, silver, bronze and basic policies. It believes the proposed categorisations would negatively impact on consumers, leaving them worse off compared to the current system.

“The exposure draft released by the Department of Health proposes restricting coverage for some surgical interventions that consumers commonly rely on such as spinal fusion, joint replacements, insulin pumps (for which there is no public hospital alternative), pain therapies such as spinal cord stimulation, hearing implants and intraocular lenses. Under the Department’s proposed model, all of these procedures would require the highest and presumably most expensive level of cover despite many of these procedures being available today to people holding lower levels of cover,” the CEO of the Medical Technology Association of Australia, Ian Burgess, said.

“We have expressed to the Health Minister our concerns that insurers will choose to no longer offer these services on the lower categories. This could lead to a further retraction in the numbers of people with PHI in total, or a reduction in the number of people covered by effective health insurance which covers them for their needs. In either case there is a risk that further burden would be placed upon public health services for elective surgery and increased waiting lists for common procedures such as joint replacements.”

“We are discussing with Minister Hunt the need to protect consumers to ensure they are not required to pay higher premiums just to maintain existing levels of insurance coverage as a result of the product categorisations.”

With these reforms due to come into play from 1 April 2019, at the same time as premium increases and the likelihood of a Federal Election in May 2019 you can be certain health will be a major factor in the campaign.[/vc_column_text][/vc_column][/vc_row]

COCHLEAR CHOOSES QUEENSLAND

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[vc_row][vc_column][vc_column_text]Cochlear is a global leader in implantable hearing devices and has completed the final phase of redevelopment at its Newstead site.

“Cochlear has transformed the lives more than 475,000 people across 100 countries and now they will continue their great work with Queensland-built technology,” Mr Dick said.

Cochlear’s Newstead base currently employs 200 people with more to follow, plus ongoing training and upskilling for staff currently employed.

“This investment has enabled Cochlear to re-direct more than $20 million of work from overseas to Queensland, so not only is our state supporting people experiencing hearing loss but additional staff will be recruited as the facility ramps up,” Mr Dick said.

“More than 27,000 Queenslanders have severe to profound hearing loss, more than 2100 have a Cochlear implant, and we hope to see many more Queenslanders benefitting from this incredible innovation now happening right here in our state.”

Mr Dick said Cochlear is the perfect example of Australian-headquartered, globally competitive exporters choosing Queensland to base their manufacturing operations.

“This is an important step for the development of advanced manufacturing capabilities in our state, with our growing manufacturing sector already employing 170,000 Queenslanders and consistently contributing nearly $20 billion a year to Queensland’s economy,” he said.

“This is what our government is focused on creating: the high-tech, high-paid jobs of the future for Queenslanders manufacturing products that create high-value exports for our economy.

“We want manufacturing businesses in Queensland to set their sights on delivering not only for domestic markets, but also for global markets, and Cochlear is one company grasping that vision with both hands through their Newstead operations.”

Member for McConnel Grace Grace said: “It’s a great source of pride for me knowing that thousands of people the world over are benefitting from the gift of sound thanks to a fantastic Australian-headquartered company producing these innovative products right here in my community.

“I can’t wait to see what this business achieves next from its Brisbane base.”

Cochlear has invested more than $15 million in capital, plant, equipment and labour to enable the Newstead facility to manufacture the latest electronic components used in their implants.

This is in addition to products and components used in the external parts of the cochlear implant system like sound processors.

In 2017-18, the facility manufactured 1.2 million parts and 550,000 finished products for global export.

Over 475,000 people of all ages across more than 100 countries now hear because of Cochlear.[/vc_column_text][/vc_column][/vc_row]

DIGITAL HEALTH WILL BENEFIT PATIENT OUTCOMES

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[vc_row][vc_column][vc_column_text]The revelation sparked the Minister for Health, Greg Hunt, to announced amendments to the legislation to assure Australians their records would not be readily available without the appropriate oversight.

The COAG Health Council unanimously endorsed the MyHealth Record legislation and the national opt-out approach.

In a joint statement COAG health ministers “reaffirmed their support of a national opt out approach to the MyHealth Record. Jurisdictions noted clinical advice about the benefits of MyHealth Record and expressed their strong support for MyHealth Record to support patient’s health. Ministers acknowledged some concerns in the community and noted actions proposed to provide community confidence, including strengthening privacy and security provisions of MyHealth Record.”

Speaking of the benefits of digital health for patients Australian Digital Health Agency CEO, Tim Kelsey, said “having a MyHealth Record means that your important health information such as allergies, current conditions and treatments, medicine details, and pathology and diagnostic imaging reports can be digitally stored in one place.”

“MyHealth Record also places Australians in control of their healthcare and gives authorised healthcare providers secure digital access to key health information at the point of care, wherever that may be,” Mr Kelsey said.

The Medical Technology Association of Australia (MTAA) CEO Mr Ian Burgess echoed many of the healthcare stakeholders who spoke in support of the My Health Record.

“With MyHealth Record looking to store medical device information digitally it’s an invaluable step in the right direction. Storing a minimum set of information (brand, model, serial number) will also support better and more effiicent post-market surveillance.

“MyHealth Record data is critical to the implementation of value-based healthcare in Australia at a national or jurisdictional level and is consistent with Government’s desire to contain healthcare costs and move to a patient-centric approach to healthcare,” Mr Burgess said.

The nursing profession will be a major beneficiary and this week the Australian College of Nursing CEO Adjunct Professor Kylie Ward indicated they have a major role in answering patient’s questions.

“Due to the role that nurses have as the interface of the health system, patients will turn to them to discuss participation in the initiative.

“Electronic health records will definitely improve clinical safety and ACN supports the introduction of My Health Record but protecting patient privacy is also a key priority for nurses, Adjunct Professor Kylie Ward said.”

Catholic Health Australia CEO Suzanne Greenwood this week called on all Australians to rationally consider the transformative benefits of the My Health Record to patient treatment, particularly in complex aged care.

“Some in our sector estimate up to 25 per cent efficiency gains through reduced duplication of pathology tests, better coordinated care, and treatment decisions, particularly in aged care where older Australians are more likely to suffer from complex co-morbidities,” Ms Greenwood said.[/vc_column_text][/vc_column][/vc_row]

CHRONIC PAIN THE FOCUS OF THE WEEK

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[vc_row][vc_column][vc_column_text]More than 6.9 million Australians live with a musculoskeletal condition, and around 81,200 Australians visit their GP everyday for a pain-related issue.

According to Painaustralia – the national peak body working to improve the quality of life of people living with pain – there has been a rise in opioid prescriptions for treating pain, increasing by 24% between 2010-11 and 2014-15.

The recognition of the need to tackle opioid addiction is something that has been widely accepted by state and federal government.

However, concerns have been raised over the government’s plans to limit chronic pain management options through the new private health insurance categorisation reforms. Under new categorisations – gold, silver, bronze and basic – chronic pain therapies would only be available for consumers who can afford to be on the highest ‘gold’ level category.

It would mean any moves to limit access to therapies such as spinal cord stimulators for the management of chronic pain would work against any efforts to arrest the increasing opioid dependency among chronic pain sufferers.

Current spinal cord stimulators use novel waveforms that are paraesthesia-free, meaning patients can drive and sleep with the therapy. This has led to improvements in quality of life measures.

A January 2017 study, sponsored by MedTech innovator Abbott, found average daily opiod use declined or stabilised for 70 percent of chronic pain patients who receive a stimulator, compared to opioid use before the implant.

Restricting insurance coverage for proven chronic pain therapies will undermine the value of private health insurance for consumers, as well as push the issue of chronic pain down the track.

Painaustralia has developed a National Pain Strategy to serve as a framework for best practice pain management. The Strategy has been given broad endorsement by an eminent group of experts from pain medicine, allied health, drug and addition medicine, mental health, rural health, general practice, pharmacy and rheumatology, as well as consumers.

Painaustralia CEO, Carol Bennett said the issue was attracting bipartisan support from both the Minister for Health, Greg Hunt MP, and the opposition’s health spokesperson, Catherine King MP.

“There has been unprecedented level of support for the issue of chronic pain in Australia recently, and we appreciate the support of the Australian Government”, Ms Bennett said.

“This long misunderstood and neglected health issue is now receiving the attention it deserves from all sides of politics, a positive move towards ensuring the best possible outcomes for individuals, families, communities, workplaces, as well as the Australian economy.”[/vc_column_text][/vc_column][/vc_row]

THE UNINTENDED CONSEQUENCES OF R&D TAX INCENTIVE CHANGES

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[vc_row][vc_column][vc_column_text]Treasury consultation on the R&D Tax Incentive (RDTI) changes that closed this Thursday has raised a number of concerns from the MTP sector.

Despite successive governments having identified the economic and other benefits that derive from encouraging the conduct of clinical trials in Australia, stakeholders like Research Australia are concerned the changes will have unintended consequences.

“The Bill will reduce the level of government support for the R&D undertaken by thousands of small research-intensive companies, regardless of reductions in the corporate tax rate. This has a direct impact on the capacity of these companies to undertake research and development, including their ability to employ the staff they need,” said Nadia Levin, CEO of Research Australia.

“And it is occurring against the backdrop of a recent fall in private sector investment in R&D when the Government’s ambition for future Australian prosperity relies on an ‘Innovation Nation’,” said Ms Levin.

Clinical trials generate the evidence required by the Therapeutic Goods Administration to enable the safe and effective sale of medical devices in Australia.

The number of clinical trials involving medical devices continues to increase from 119 to 159 in just three years, showing the strongest growth compared with others in the MTP sector.

The Medical Technology Association of Australia (MTAA) focused its concerns with the proposed definition of clinical trial which could see that growth in recent years being curbed by the proposed legislative definition.

“The proposed definition of clinical trials only covers medicines, it needs to reference the TGA definition of medical devices to ensure medical devices are covered by the $4 million cap exemption,” said Ian Burgess, CEO of MTAA.

“Limiting the current definition to the trials being conducted in humans may inappropriately limit the scope of the exemption provisions. Firstly, for many medical devices, expenditure on human clinical trials is not as significant as in the preclinical studies and therefore the value of applying the cap exemption provisions for medical devices is limited.”

“The significant cost of preclinical studies is a unique consideration for medical devices and it may be possible that in some instances, these costs exceed those of conducting the clinical trials in humans,” said Mr Burgess.

As such, MTAA considers the exemption provisions should be implemented in a way that would allow medical device companies to receive an uncapped tax refund for conducting preclinical studies.

Additionally, the new calculation method of the RDTI will see start-ups with turnover under $20 million and in tax loss, lose a much-needed portion of their cash refund.  Eligible expenditure, previously resulting in a 43.5 per cent claim, will now be eligible for only a 41 per cent refund. For each $1 million of expenditure, the loss will be $25,000.

“Despite the welcome protection of clinical trials in RDTI reform package, the details of the definition and eligible expenditure remain uncertain and we now find that biotech and medtech companies claiming refunds will be hit with a 2.5 per cent loss of refund as soon as the legislation passes, due to a new calculation method,” said Lorraine Chiroiu CEO of AusBiotech.

“The double-pronged loss of benefit resulting from the new calculation method and the new intensity measure, along with the uncertainty on how the clinical trials protection will work, creates a serious threat to this important program – and it should not be rushed,” said Ms Chirou.

Despite RDTI being the subject of multiple government consultations since 2013 it looks like the MTP sector is going to have to put up with a less than satisfactory system. Time will tell if clinical trial numbers and R&D expenditure drops in 2019 and beyond.[/vc_column_text][/vc_column][/vc_row]

AUSTRALIAN RESEARCHERS SPARKING IDEAS ON THE WORLD STAGE

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[vc_row][vc_column][vc_column_text]Over the past week, senior executives from across the world gathered in Berlin, Germany for the annual SPARK Global meeting. The purpose of the meeting is to bring together like-minded translational scientists in academia to collaboratively address global health challenges.

As part of the SPARK Global meeting, Accelerating Australia and MTPConnect selected six esteemed Australians to join SPARK’s two-week Biomedical Innovation and Entrepreneurship training program. The six include Anqi Li and Garcia Cruz from Monash University, John Karas and Lisseth Burbano-Portilla from the University of Melbourne, and Carly Italiano and Max Cummins from the University of Technology Sydney.

All six Australians will work across multi-disciplinary and multi-national teams to solve global healthcare problems.

Maria, a PhD student at Monash University, is currently working in the field of cardiac tissue engineering, aiming to improve cardiac regeneration after heat attacks by developing a 3D bio-printed scaffold.

Speaking of her scholarship to attend the course, Maria said she believes the course “will be beneficial to me, as it takes me closer to develop feasible and better solutions, instruct on how to obtain funding to create biomedical companies and reinforces the communication skills that are essential for working effectively in multi-disciplinary teams.”

Joining the Australian researchers will be a delegation of senior executives from SPARK Oceania and Accelerating Australia, including Professor Michael Wallach and A/Professor Kevin Pfleger. Mr Wallach was invited by Stanford SPARK founders, Professor Daria Mochly-Rosen and A/Professor Kevin Grimes, to present the Australian SPARK model as a shining example of collaboration that other Spark programs can emulate.

Professor Wallach said the philosophy of SPARK Australia is to focus primarily on the benefit for the patient, which contributed to the success of all of the projects participating in the program.

“It has been very exciting seeing SPARK programs develop in Sydney (UTS, Univ. of Sydney & Macquarie Univ.), at Monash University starting last year and more recently at the University of Melbourne. Working closely with Professor Daria Mochly-Rosen and Prof. Kevin Grimes from Stanford University, School of Medicine (the Directors of SPARK Stanford) to bring SPARK to Australia has been an amazing experience & a great honour for me,” Prof Wallach said.

The SPARK program was originally developed by Stanford University in 2006 as a way to advance research discoveries from bench to bedside through education, mentorship and funding, often with a particular emphasis on drug development. A number of academic institutions worldwide have successfully developed their own SPARK programs based upon the SPARK at Stanford model, including Japan, France, Switzerland, Brazil, Norway and Australia.[/vc_column_text][/vc_column][/vc_row]

J&J DIGITAL SURGERY PLATFORM GROWS WITH 360 KNEE SYSTEMS

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[vc_row][vc_column][vc_column_text]360 KNEE SYSTEMS is a known innovator of software-enabled digital solutions that personalise total knee replacement surgery. Under the agreement, 360 KNEE SYSTEMS will be available with DePuy Synthes’ ATTUNE Knee System in both Australia and New Zealand.

The 360 KNEE SYSEMS platform empowers patients to participate in and personalise their own treatment plan before, during and after total knee replacement surgery. It features smart technologies such as wearable devices to help surgeons plan the treatment pathway with their patients. This includes mapping each patient’s kinematic (body motion) data and preparing a 3D model of the knee to create a virtual surgery plan unique to them. Post-surgery, the 360 KNEE SYSTEMS platform provides the patient with a personalised rehabilitation and monitoring program.

Managing Director of Johnson & Johnson Medical Devices Companies in Australia & New Zealand, Sue Martin, said the company was excited about the ways digital health will help J&J redefine success is surgery and improve outcomes in addition to the company’s products and other solutions.

“Our agreement represents an exciting opportunity to provide an end-to-end digital solutions and surgical platform that brings the individual needs of patients right into the heart of decision making for their total knee replacement”, Ms Martin said.

The agreement will allow this technology to be used to provide further potential benefits for patients undergoing knee replacement surgery with the ATTUNE Knee, which is designed to work in harmony with a patient’s anatomy and deliver what they want from the procedure: stability in motion during daily activities.

To-date, the ATTUNE Knee has bene used for more than 650,000 knee replacements in 44 countries.

DePuy Synthes’ President of Global Joint Reconstruction, Tim Czartoski, said J&J Medical Devices has a proven track record in developing meaningful innovation, and he the company expects to be investing locally with 360 KNEE SYSTEMS.

“We are building a digital ecosystem where technologies are connected before, during and after surgery, in line with our aim to improve outcomes for patients as well as increase their overall satisfaction with their healthcare experience.[/vc_column_text][/vc_column][/vc_row]

PARTNERSHIP DELIVERS NEW FIRST NATIONS HEALTH APPROACH

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[vc_row][vc_column][vc_column_text]The new Family Health and Wellbeing Framework, known as Health in the Hands of the People, along with Johnson & Johnson’s Innovate Reconciliation Plan (Innovate RAP) were launched in Sydney today.

“Funding this new framework and our Innovate RAP are examples of the Johnson & Johnson Credo which challenges us to put the needs and wellbeing of the people we serve first,” Johnson & Johnson Pacific Managing Director Doug Cunningham said.

“Our Innovate RAP is an opportunity to deepen our engagement with Aboriginal and Torres Strait Islander communities through improved cultural awareness. Supporting Children’s Ground and its development of Health in the Hands of the People demonstrates our strong commitment to close the gap in health outcomes for Aboriginal and Torres Strait Islander people.

“At Johnson & Johnson our vision for reconciliation is that Aboriginal and Torres Strait Islander people live longer, healthier and happier lives. Both the Innovate RAP and our partnership with Children’s Ground demonstrate our vision in action.”

Health in the Hands of the People is a framework for health promotion that embraces First Culture, Children’s Ground co-founder and CEO Jane Vadiveloo said.

“The framework is built with the community, from community-owned knowledge. In First Nations culture, health is always interconnected with all aspects of wellbeing.

“We know that the devastating health outcomes of First Nations people in this nation are due to the cumulative effects of the social, cultural and economic determinants of health.”

In this new work, supported by Johnson & Johnson, Children’s Ground integrates a First Nations wellbeing knowledge system with the western health approach. We anticipate that by applying this in a whole-of-community way, in community, that health outcomes and indicators of wellbeing in general will be improved in the long term.”[/vc_column_text][vc_single_image image=”2213″ img_size=”full” add_caption=”yes”][vc_separator][/vc_column][/vc_row]