A STATEMENT ON THE DISPUTE BETWEEN MEDIBANK AND CALVARY

The Federal Government must intervene immediately in the ongoing dispute between Medibank and Calvary.

The dispute has gone on for too long and many members of the community are feeling very anxious right now.

If no agreement is reached between the two parties Medibank private health insurance policy holders attending Calvary Hospital could be forced to pay as much as 25% of the cost of their hospital stay. This will make health care simply unaffordable for many people and undermines the Government’s push for people to take up private health insurance.

The Minister must direct the Australian Commission on Safety and Quality in Health Care to intervene immediately and arbitrate an outcome.

Even if an agreement is reached, the current demand by Medibank to exclude 165 events from their reimbursement schedule will put a significant financial burden on Calvary and set a precedent sure to be quickly followed by Australia’s other health insurers.

The public perception that Medibank is using its market power to bully a small hospital network is not unwarranted. Medibank recently posted an annual profit close to a third of a billion dollars so it hardly needs the cash.

My concerns are informed by discussions with Dr Michael Armitage, the CEO of the peak health insurance body Private Healthcare Australia, Professor Brian Owler, President of the Australian Medical Association and James Connors, Head of Government and Regulatory Affairs at Medibank.

My understanding is that the heads of Medibank and Calvary are meeting later today and it is time for them to put commercial self-interest to the side and focus on the public interest.
Andrew Wilkie, Independent Member for Denison