Shareholders before patients

The president of the Australian Medical Association, Dr Michael Gannon blamed the health insurance industry for increased premiums in order to pay shareholders, while reducing choice for patients by “controlling what services are provided”.

He told a federal parliamentary committee in Sydney the cost of medical procedures is not the reason why patients with health insurance are seeing a rise in out-of-pocket expenses. The problem facing them was they believed they were covered but have inadvertently bought a product that is “useless”, he said.

He blamed a shift to a full-profit industry for the growth in health premiums because insurers had to ensure there were sufficient profits to allow a return to shareholders. The AMA president also said insurers were driving Australia to a “managed-care system” like in the US. Gannon said insurers were trying to convince government they could reduce health expenditure through controlling what services are provided.

“We do not believe insurers should decide which procedures should be funded,” he said. “Insurers should not … interfere with the relationship between the patient and the doctor.”