Medibank’s Craig Drummond seeks action on out-of-pocket costs

Medibank chief Craig Drummond says the issue of rising out-of-pocket medical costs must be addressed.

Medibank CEO Craig Drummond. Picture: Andrew Tauber

Medibank chief Craig Drummond says the issue of rising out-of-pocket medical costs must be addressed, calling on the Turnbull government to act quickly.

He said consumers were rightly asking for higher levels of accountability and disclosure. “Any party, whether private health insurers or healthcare providers, would be unwise to push back strongly against this push (for transparency) from consumers,” he said.

Health Minister Greg Hunt has appointed chief medical officer Brendan Murphy to chair a committee to investigate out-of-pocket expenses and ensure consumers are better informed of fees before agreeing to treatment. The announcement was followed by news that Australians were increasingly accessing superannuation early to pay for medical bills.

It has also been revealed that “ill health or the lack of insurance” was the primary cause of non-business-related personal insolvency for 1830 ­people in 2016-17.

“It’s sad that people are being bankrupted because of medical costs. I feel for people going into these situations without full transparency,” Mr Drummond said, adding that while he would not presuppose what the government committee would deliver on, the current system was not good enough.

“I’m not going to point the finger at any one group; it’s for all of us, including private health insurers, to get our act together to provide transparency about what the outcome (for patients) is likely to be,” he said.

“Let’s hope the committee works with speed and doesn’t get locked up in committees that take years to come to fruition.”

Yet Australians could be in line for some relief on costs, with this year’s insurance premium increases widely expected to be lower than last year’s.

Mr Drummond said Mr Hunt had said he would like a figure of about 4 per cent, or just below. The industry average last year of 4.84 per cent was a decade low.

“There is a lot of scrutiny, as there should be, on this number,” Mr Drummond said.