Medibank Private selloff

The Commonwealth Government has announced that they intend to sell Medibank Private, and that this is to be accompanied by a restructure of basic cover.

A media release issued by Federal Health Minister, Tony Abbott MP advises changes that will see dentistry, physiotherapy, podiatry, psychology and other preventive care included in basic hospital cover.

From April 2007, health funds will be able to offer products that pay benefits for services that are part of, prevent, or substitute for hospital services. This will remove the current boundary that exists between “hospital” and “ancillary” insurance.

Marcus Wilson, a business analyst quoted in The Age this morning, say he expects "a private Medibank to negotiate more aggressively with private health providers".

It seems we may need to remind the community of remarks made to a Federal Parliamentary Committee (in 2003) by Professor John Deeble, one of the key architects of Medicare:

"The main problem with Medicare" (or any health insurance in our view) "covering the [dental] industry is its uninsurability.

... insurance works best for things that are episodic and unpredictable. Dental illness is slow: it is not episodic and it is not unpredictable, because you know you have it for quite a long time. You do not suddently discover that you have a dental problem. It should be treated, but it should not be treated within an insurance approach." (emphasis added)

Advice to members about the implications of these changes for their relationships with patients and delivery of dental services will be prepared and published as more details come to light.

Government information about their PHI industry reforms is available at http://www.health.gov.au/phi