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Participating Health Funds

Publication: Adelaide Now

Date: 11 August 2010

Section: Opinion

Private health costs public millions

Greg Kelton

Article excerpt:

THE public health system is losing up to $31 million a year because many patients are refusing to use their private health insurance if admitted to a public hospital.

Those who do not use private cover are worried their health premiums will rise if they use it, do not want to pay any gap fee or want to avoid excess payments which might be a condition of their insurance.

Privately insured patients are also using public emergency departments to avoid fees of between $80 and $130 if they go to an emergency department at a private hospital.

Estimates of revenue the public health system misses out on range between $14 million and $31 million a year, depending on which hospital-attendance figures are used to calculate the result.

Health officials are stepping up moves to get more public patients to use their private insurance in a bid to raise more revenue and offset widespread spending cuts in the state Budget.

The private health insurance industry has warned the move could lead to increased insurance premiums.

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