More health insurers to face legal action for consumer rip-offs: ACCC
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Australia's consumer watchdog says it plans to take legal action against more private health insurers this year, saying many patients are being slugged with unexpected hefty bills after hospital visits.
Key points:
- ACCC already involved in legal action against insurer Medibank Private
- CEO concerned about the practice of changing benefits for hospital tests without directly informing patients
- Watchdog will launch court action against more private health insurers this year
Australian Competition and Consumer Commission (ACCC) chairman Rod Sims said he felt a mixture of "surprise" and "horror" after reading stories of how some patients were treated by private health insurers.
"What concerns us is companies saying, 'Well it's too expensive to keep offering this to members, so we'll stop doing it' and not telling people," he said.
"So someone could have gone to hospital, enjoyed certain benefits one day, go back again and be faced with a large, out-of-pocket bill the next day.
"It is certainly surprising how these decisions are made, and particularly given the impact that they can have on vulnerable people who are in hospital or are just about to go into hospital."
The ACCC is already involved in legal action against insurer Medibank Private.
It has alleged it breached Australian Consumer Law by engaging in misleading conduct, making false or misleading representations and engaging in unconscionable conduct.
The consumer watchdog alleged Medibank and its subsidiary ahm Health Insurance failed to notify its members about changes to benefits paid for in-hospital pathology and radiology services.
Medibank has denied the allegations and said it was not required to expressly notify members about changes to out-of-pocket expenses for hospital tests, such as X-rays, CT scans and MRI scans.
Practice affecting hospital patents: ACCC
Mr Sims said he was concerned the practice of changing benefits for hospital tests without directly informing patients may be more widespread.
"I think it's fair to say it's affecting a significant number of people who are in hospital," he told the ABC.
"I guess the behaviour we're seeing seems sufficiently widespread that it needs a fairly strong message to get the deterrence message out there."
Private Healthcare Australia CEO Rachel David said private health funds had made a considerable investment in developing policy to improve the transparency of private health insurance products for consumers, and maintain an affordable private health system.
"More than 13 million Australians rely on private health insurance for security and peace of mind, so they can access health care when and where they need it," Dr David said.
The ACCC chairman will outline the commission's priorities at a speech at the Committee for Economic Development of Australia.
Topics: health-insurance, health, consumer-protection, australia
