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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]

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]

THE ACTUATOR’S EIGHT PROMISING MEDTECH COMPANIES

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[vc_row][vc_column][vc_column_text]The Actuator, Australia’s venture-backed national accelerator for medical technologies today announced their second cohort of promising medtech seed ventures.

Supported by Australian Industry Growth Centre, MTPConnect and a plethora of ecosystem partners, The Actuator’s second cohort of companies will be put through their paces in a rigorous industry-led 15-month technology and entrepreneurial skill development accelerator program. Along with training, mentoring and connectivity to local and global networks, the program will provide up to $200,000 seed investment, and up to $2.5 million further funding through partners, Artesian.

After an intense selection and due diligence process, eight high-impact medtech startups were selected to participate in the 2018 Round 2 Actuator Accelerator program.

The second round of applications was extremely competitive and the quality of applications was exceptionally high, with 70 early-stage startups seeking to accelerate the commercialisation of their medtech innovations.

Capitalising on the Nation’s existing research, service and product development strengths, The Actuator will bring in the very best of Australia’s medtech and innovation system to prepare teams for clinical trials, advanced manufacturing and at-scale technology development.

The 8 successful participants are:

  1. TerraBlue XT – Medical grade, non-invasive, fully automated wearable system backed by an IoT/AI platform to predict, detect and manage epilepsy, scalable to other chronic neurological disorders.
  2. Curatek – A wireless disposable patch that continuously monitors respiratory rate to aid early warning of patient deterioration
  3. Stelect – A single use, novel catheter design for accurate stent selection the first time, every time.
  4. Augmented Bionics – Non-surgical ‘wearable’ alternative to cochlear implants.
  5. Rehabswift – A restorative brain-computer interface (BCI) to kick-start stroke recovery.
  6. Flomatrix – A novel catheter design aimed to reduce the current high PIVC failure rates
  7. Hexagon Innovation – Hexagon Innovation offers wearable technology that relieves worry about elderly people by detecting unusual events, falls or distress wherever they occur.
  8. Lenexa Medical – pressure injury (PI) prevention and detection in the operating theatre empowering clinicians to deliver targeted wound care interventions.

“Our mission is to support our home-grown talent within their local innovation ecosystems, and build incredible successes. We are eager to support such innovative and dynamic medtech startups, emerge out of Australia,” says Dr Buzz Palmer, CEO of The Actuator.

“The Actuator is an exciting initiative set to expedite technology transfer and research translation. MTPConnect congratulates the successful participants of the second round and we look forward to tracking the impact of these medical technologies.

“MTPConnect funded the Actuator in the 2016 round of our Project Fund Program, which was developed to bring together all players in the sector, to drive collaboration and commercialisation; overcoming identified constraints and barriers in the sector,” says Dr Daniel Grant CEO of MTPConnect.

The Victorian Government helped The Actuator to establish its headquarters in Melbourne and Minister for Innovation and the Digital Economy Philip Dalidakis said its programs were providing invaluable support to startups in a key sector.

“The Actuator is helping nurture innovative medtech startups as they take the next step in turning their great ideas and research into commercial success stories,” Mr Dalidakis said.[/vc_column_text][/vc_column][/vc_row]

BRIDGETECH PROGRAM ANNOUNCES PARTNERS AND 2018 COHORT

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[vc_row][vc_column][vc_column_text]Applications for the BridgeTech Program have been running over the past few months, and have so far received over 120 expressions of interest from researchers, business development professionals, entrepreneurs, medical professionals and more.

The BridgeTech Program is convened and administered by QUT and involves a consortium of partners who are delivering a program to train researchers and entrepreneurs on the scientific, legal, financial, clinical, regulatory and reimbursement disciplines related to taking medical technology to market.

This highly selective program is now enrolling 77 participants from around Australia, including:

  • 14 participants from New South Wales
  • 25 participants from Queensland
  • 8 participants from South Australia
  • 23 participants from Victoria
  • 7 participants from Western Australia

Further to the announcement of the selection of the 2018 participants, The BridgeTech Program also announced the consortium partners who will be contributing to the design and networking opportunities of the program.

Comprising medtech companies, universities and industry associations, consortium now has 20 partners including:

 Agilent Technologies IDE Group Stryker
AusBiotech Life Sciences Queensland The Actuator
Cochlear Macquarie University University of Melbourne
Deakin University Magnetica University of New South Wales
Flinders University MTAA University of Newcastle
Gadens Queensland University of Technology University of Western Australia
Hydrix
 Siemens Healthcare

Speaking on the importance of the partners, Professor Lyn Griffiths, Executive Director of QUT’s Institute of Health and Biomedical Innovation (IHBI) and Director of The BridgeTech Program, said that “through its consortium of partners, the BridgeTech Program is unique in its ability to incorporate industry expertise, create key collaboration opportunities and draw on the breadth of knowledge needed to design an effective course.”

The BridgeTech Program is also supported by MTPConnect – the Medical Technologies and Pharmaceuticals Industry Growth Centre – who are providing industry matched funding to run the program.

At the first event last week, held in Brisbane, at the Institute of Health and Biomedical Innovation QUT, The BridgeTech Program hosted Lusia Guthrie as the first speaker for the 2018 cohort.

In addressing BridgeTech participants, Mrs Guthrie spoke of her experience and interest in the development and commercialisation of breakthrough healthcare products that embrace automation, robotics and machine learning.

Having over 35 years of experience in various sectors of healthcare, Mrs Guthrie shares her breadth of knowledge on bringing innovative products to global markets, embracing the entire process from concept to product launch, including company formation and capital raising.

This seminar is just the first of a series of talks that will be held in different cities around Australia for the 2018 cohort. Following this, BridgeTech participants will attend a 3-day face-to-face training session to be held at Luna Park in Sydney in November where they will consolidate their learning and create key collaborative networks in order to facilitate their commercialisation pathway.

“Developing this important educational initiative in partnership with industry means that participants will be provided with relevant and specific commercialisation training, advice and networks to better assist the commercialisation of medical technology and medical devices in Australia,” Professor Griffiths said.

The BridgeTech Program is the sister program of The Bridge Program, which is now in its second successful year and focuses on the skills needed for the commercialisation of pharmaceuticals rather than medical devices.[/vc_column_text][/vc_column][/vc_row]

AUSTRALIAN HEALTHCARE PROFESSIONALS LEADING THE WAY IN ETHICAL COLLABORATION

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[vc_row][vc_column][vc_column_text]MTAA was one of five organisations that led the development of the Australian Consensus Framework, which aims to increase ethical behaviour characterised by values and principles such as honesty, integrity, transparency, accountability and oversight.

It has been developed with input and collaboration from 50 healthcare entities who are now signatories to the Australian Consensus Framework, including professional health bodies, industry organisations, hospital and health services associations, universities, regulators, patient and advocacy groups and other related organisations.

At today’s 2018 APEC Business Ethics Forum in Tokyo, Australia won the prestigious Lighthouse award for its work on the Australian Consensus Framework and generally the work to promote ethical behavior.

The Australian Consensus Framework does not replace existing Codes of Practice, with the values and principles constituting the Australian Consensus Framework aligning with the more comprehensive Medical Technology Industry Code of Practice that is administered by MTAA.

This industry-specific Code of Practice is mandatory for members of MTAA and incorporates detailed, best-practice requirements to promote high standards of ethical behaviour. The MTAA Code includes specific and detailed requirements for ethical behaviour in relation to advertising and promotion of products; interaction with healthcare professionals; mandatory training on the Code for company representatives who interact with healthcare providers; and interactions with consumers.

“As the fifth largest contributor to national growth and in employing over 1.5 million Australians, it is important that the healthcare sector exhibits and practises high levels of trust to the standards expected by the community. Open collaboration, dialogue and communication across all players in the health care sector is key. The Australian Consensus Framework for ethical collaboration provides a platform for this engagement.

“A key reform for the medical technology industry would be the implementation of a harmonised industry Code of Practice which all device manufacturers and suppliers are required to adhere to by law or regulation. The MTAA Code would be an appropriate basis for such a harmonised code,” said Ian Burgess, CEO of MTAA and a member of the Australian Consensus Framework Leadership Team.

Australian Federal Minister for Health, The Hon. Greg Hunt MP, praised the Australian health sector for developing the voluntary initiative.

“The new Australian Consensus Framework has come about from the hard work of a dedicated group of people in the health care industry who want to do things better. That work has been led by the Australian Orthopaedic Association, with representatives from the Medical Technology Association of Australia, Medicines Australia, Royal Australasian College of Surgeons and the Australian Healthcare & Hospitals Association, said Minister for Health, Greg Hunt MP.

Chair of the Australian Consensus Framework for Ethical Collaboration and CEO of the Australian Orthopaedic Association, Adrian Cosenza, said the Framework “has been designed in an environment where society’s trust in government, business and not-for-profit bodies globally, including in Australia, as measured by the respected Edelmen Trust Barometer, has been in steady decline in recent years. Unethical behaviour is one of the causes of this trust deficit.”

The launch of the Framework took place in Tokyo today (Friday 20 July) with addresses by the Federal Minister for Health the Hon. Greg Hunt MP and Australia’s Ambassador to Japan Richard Court as part of the 2018 APEC Business Ethics for SMEs Forum.[/vc_column_text][/vc_column][/vc_row]

GOLD, SILVER, BRONZE AND BASIC IS IT JUST A BRANDING EXERCISE?

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[vc_row][vc_column][vc_column_text]Earlier this week Minister Hunt invited stakeholders to comment on the exposure draft of the Private Health Insurance (Reforms) Amendment Rules 2018 (the Rules). The measures contained in the Rules will give effect to elements of the private health insurance reform package.

One industry with a keen interest in ensuring consumers continue to receive access to life saving and life changing medical treatment through their private health insurance is the medical technology (MedTech) industry.

Speaking on behalf of MedTech innovators, Medical Technology Association of Australia (MTAA) CEO, Ian Burgess, said that while MTAA supports the intent of the government’s reforms, there was still concern as to whether complex health insurance policies being peddled by private health insurance providers would continue due to the differences in coverage across a large number of hospital treatment categories.

“MTAA has already played a significant role in addressing the rising financial burden of private health insurance, particularly in terms of value and affordability. Our industry agreed to a reduction in the benefits paid by insurers for devices on the Prostheses List. These actions resulted in savings to insurers of around $1.1 billion, over four years, and underpinned the lowest premium increase in 17 years,” Mr Burgess said.

“The longer and more specific the list of services for inclusion/exclusion in the insurance product tiers, the more complicated the insurance product will be and lead to continued consumer confusion about what they are purchasing.

“Many of the hospital treatments that are flagged to be exclusive to the gold category are associated with clinical conditions with a high and/or growing prevalence. If insurers do not maintain existing coverage for patients with these conditions who are currently covered by low and mid-tier insurance products, consumers will be required to upgrade their cover to ensure they maintain existing levels of coverage, thereby increasing the cost of premiums at the household level.”

Australian Private Hospital Association CEO, Michael Roff, said that while the categories have the potential to make the system easier to understand, there remain concerns about the retention of junk policies.

“It’s disappointing. Not only has the government not addressed the issue of junk policies, it has, in fact, entrenched them with the new ‘basic’ category. Junk policies are a major cause of consumer dissatisfaction when they discover they don’t have cover for private hospital treatment when they need care,” Mr Roff said.

Despite the concerns raised by other industries, Private Healthcare Australia – representing the private health insurance industry – welcomed the government’s announcement saying the new system marks a major improvement to how consumers choose and use their private health insurance.

“Over a two-year period, we have gone through health fund products line by line to classify them into Gold, Silver, Bronze and Basic categories depending on the cost of the product, and the level of cover provided,” Private Healthcare Australia CEO, Dr Rachel David, said.

“This has been a complex process and a balancing act, because we need to ensure consumers have access to products which are both affordable and provide value for money across all life-stages.

“We have been careful not to unintentionally increase complexity, or introduce product changes that would either increase premiums or reduce coverage unnecessarily,” Dr David said.

Many in the industry will continue to look closely at these reforms to see whether they will help stem the flow of consumers opting-out of the private healthcare system, in favour of the public healthcare system.[/vc_column_text][/vc_column][/vc_row]