As part of the biggest shakeup of private health insurance in decades, the government has announced plans to end subsidies for therapies including acupuncture, herbal medicine, aromatherapy, pilates and yoga from next April.

Jon Gamble, of Karuna Health Care, said the move would restrict people’s health and well-being choices and have a disastrous effect on the industry.

Further, he said, the small amount it would save the health budget in the short-term would be far outweighed by the long-term costs.

Mr Gamble is a director of the Australian Traditional Medicine Society (ATMS) which this month launched the ‘How Dare They!’ campaign, aimed at the government changes.

“We’ve predicted a major downturn in the industry – with a drop of 26 per cent in the services provided by all complementary and alternative medicine (CAM) practitioners across Australia,” he said.

“It’s a counter productive measure by the government – for the tiny piece it will slice off the health budget it’s going to lead to increased costs elsewhere.

“For instance people who now use complementary therapies for conditions like stress, chronic fatigue, allergies or migraines will be forced back into the public system, particularly GPs and hospitals.

“Meantime loss in overall revenue for CAM practitioners will result in less tax, and the flow-on effect for companies which produce products they prescribe like vitamins and herbs will see a reduction in revenue from GST.

“It may also lead many to reduce or cancel their private health insurance, creating further reliance on the public system.”

Mr Gamble, who’s been in the industry for three decades, said there were many reasons people turned to natural therapies.

“Patients may consult CAM practitioners and use supplements because they have a chronic disease which is not adequately managed through conventional medicine, such as chronic fatigue or irritable bowel syndrome,” he said.

“Or they may want advice on healthy ageing, for stress management or for acute care, as an alternative to antibiotics or corticosteroids.

“We’d never suggest natural therapies replace medical treatment – they only complement orthodox treatment and fill the gaps.”

Mr Gamble said more than 88,000 Australians had signed the Your Health Your Choice online petition to call for a senate inquiry into bias against natural therapies.

“We want to put pressure on the government so these changes are not implemented,” he said.

“Taking natural therapies outside the private health industry sphere is going to perceptually devalue these therapies in people’s minds – and make it more expensive for those who rely on them.

“This move by the government is more about politics than looking at the health needs of Australians.”

Under the changes to private health insurance, all policies will be categorised into a four-tier system – Gold, Silver, Bronze and Basic – by April 1, 2019.

In announcing the scrapping of rebates for natural therapies in October 2017, Federal Health Minister Greg Hunt says it was among a range of measures to make private health insurance “simpler and more affordable”.

However ATMS chief executive officer Charles Wurf said natural therapies were vital not only to the economy but to everyday Australians, with around three-quarters of the population having used at least one form of natural therapy.

“For many Australians private healthcare is about choice,” he said.

“Removing the private health insurance rebate on natural therapies seriously limits the choices available to Australians to manage their personal health and may affect the preventative steps they take to keep their families healthy.”

He said the ATMS campaign would run parallel to the planned Federal Government consultation on the issue this month.