AMA backs transparency push but says fee tool overhaul must go further

THE Australian Medical Association (AMA) has welcomed the federal government’s commitment to improve transparency around private health costs but says broader reform is needed to address rising out-of-pocket expenses.

AMA president Dr Danielle McMullen said upgrades to the Medical Costs Finder website could help patients better understand healthcare fees, but only if supported by legislative change, accurate data, and stronger cooperation from private health insurers.

“Labor’s commitment to upgrade the Medical Costs Finder website has the potential to improve transparency for consumers on possible out-of-pocket costs, if the changes include relevant information about all factors that contribute to costs,” Dr McMullen said.

The AMA is in discussions with Health Minister Mark Butler’s office and the Department of Health and Aged Care to ensure the site supports informed financial consent and patient financial literacy.

Dr McMullen said the AMA had long advocated for more transparency, including through its own Informed Financial Consent guide to help patients understand and discuss healthcare costs.

She said the website’s effectiveness would depend on better data from insurers, particularly around rebates for specific procedures — information she said had been lacking despite past government commitments.

“Our private health insurance report card provides a snapshot of the rebates insurers pay for the same service, and this year it highlighted a $510 difference between the highest and lowest rebates for the uncomplicated delivery of a baby,” she said.

“The difference in rebates has a major impact on a doctor’s decision to accept the insurer’s rebate or charge a gap.

Dr McMullen said rebates were currently hidden on insurer websites and should be visible through the Medical Costs Finder so consumers could compare value.

She also flagged a push to rename the site to reflect the broader factors influencing out-of-pocket costs.

According to the AMA, insurer profits have grown by nearly 50 per cent in five years to June 2024, while patient rebates for medical services rose just over 10 per cent in the same period.

She said the AMA would work with any future government to ensure the website upgrades address both transparency and usability issues.