ACCC Report on health funds

The Australian Competition and Consumer Commission (ACCC) has noted some concerns, but also some progress, with the private health insurance sector in its Report to the Senate on anti-competitive and other practices by health funds and health service providers in relation to private health insurance. This report, which was tabled yesterday, is the seventh prepared by the ACCC in compliance with a Senate order. It covers the period from 1 July 2004 to 30 June 2005.

According to an ACCC media release "The report outlines the ACCC's activities in relation to the private health sector during the last financial year, and also some concerns about some of the current practices in the sector. ... The report also notes, however, that the major issues of concern are either being addressed or are best dealt with outside the ACCC's role of enforcing the Trade Practices Act".

The report notes (p.22) that the main areas where complaints were received during this reporting period were:
> advertising by health funds, or statements by health fund staff
> premium increases or benefit changes by health funds (including in relation to inadequate
notification of premium increases or benefit changes)
> suspected arrangements between competing health funds, medical practitioners or other
providers of health services
> enquiries as to why some health service providers (e.g. private hospitals, dental and day
surgeries) did or did not have purchaser provider agreements with certain health funds.