No need to panic, NIB health fund says

Private health insurance giant NIB has moved to reassure its 1.3 million members following a breakdown in negotiation with St Vincent’s Health Australia.

NIB boss Mark Fitzgibbon. Picture: Hollie Adams

Private health insurance giant NIB has moved to reassure its 1.3 million members following a breakdown in negotiation with St Vincent’s Health Australia, threatening to render its coverage at Australia’s largest not-for-profit hospital provider useless.

Speaking on Friday after St Vincent’s advised NIB it would walk away from negotiations due to a pricing dispute, NIB boss Mark Fitzgibbon advised members they would remain covered at least until the contract lapsed in October, as it attempted to revive the pricing agreement.

“There are no immediate changes to cover that would ­affect our members,” he said. “Treatment can go ahead for any member with a booking, and in some cases for some months after termination of an agreement with the hospital, if that ­occurs.”

Unless the dispute is resolved, the decision leaves policy holders at risk of paying thousands of dollars more if they receive care across the non-profit’s 10 facilities in NSW, Queensland and Victoria by placing them on second-tier default benefits.

NIB has advised that treatment started before October 3 will continue until discharge.

Pre-booked pregnancy and birth will be covered until July 2025, while rehabilitation, mental health, oncology, and renal services, started on or before the October 3 deadline, will be covered until April 2025.

Contracts with more than 90 per cent of all private hospitals and medical facilities nationwide would also not be affected.

Despite St Vincent’s demand that NIB “put a fair offer on the table” as it faces steep cost ­increases across nursing, food, electricity, IT and maintenance, Mr Fitzgibbon was optimistic that the private hospital provider would re-enter negotiations. “NIB has a long-term relationship with St Vincent’s and hopes negotiations resume,” he added.

Ben Harris, director of policy and research at Private Healthcare Australia, which counts NIB as a member, similarly sought to assuage concerns that patients would be impacted.

“This negotiation has got a long way to run and there’s no need to unnecessarily alarm ­patients about the potential of charging co-payments,” he said.

“It’s disappointing that what should be a negotiation behind the scenes has been pushed into the public domain. This is probably designed to bring political pressure to bear on the government as they undertake the private hospitals review.”

 

 

However, it is understood that the Albanese government will not intervene in the commercial contractual negotiations between NIB and St Vincent's.

Katharine Bassett, the health policy director at Catholic Health Australia of which St Vincent’s is a member, backed the not-for-profit’s push to go public over its rift with NIB.

“St Vincent’s, like many private hospitals, are at a breaking point,” she said.

“The federal government’s current private hospital financial review is a critical first step in the sector being able to start conversations about sustainable funding reform to prevent these types of contract disputes in the future.”

St Vincent’s was contacted for comment.