Members of Australia's second largest private health insurer will have to pay more for treatment at two Wollongong private hospitals soon.
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Ramsay Health Care, which owns Wollongong and Figtree private hospitals, and Bupa, Australia's second biggest private health insurer, have not been able to reach agreement on a new contract.
Bupa members can still be treated at Ramsay-owned facilities but from August 2 will face additional out-of-pocket hospital costs.
Previously those costs were capped at $500 but without a contract in place there will be no protection from the fund's medical gap scheme.
Exactly what those costs will be has yet to be determined, Wollongong Private Hospital's chief executive officer Steven Rajcany said.
"Patients covered by Bupa won't be able to access our facilities without additional payments," Mr Rajcany explained.
"We are unsure what those costs will be but they could well be significant."
It means Bupa policy holders have 90 days to either expedite their treatment at Ramsay hospitals or arrange alternative private health cover.
"That is our recommendation for concerned patients," Mr Rajcany said.
"Patients who want to minimise their costs need to look at the timing of their treatment so will need to speak with their doctor or, of course, speak with Bupa also."
The health insurer has laid the blame for the stalemate squarely at the health care provider.
It had sought unreasonably high rates of increase, more than double the rates that have been agreed with all other hospital groups in recent times, it claimed.
"The important thing for our members to know is nothing changes in the next 90 days, if you're booked in for an operation you will still be covered during that period," Bupa Health Insurance managing director Chris Carroll said.
"After that period, the choice to charge members an out-of-pocket cost will be a decision made by Ramsay as Bupa intends to continue paying its current rates, which are above the statutory default rates.
"Ramsay's refusal to negotiate in any meaningful manner arguably reflects a desire to increase the value of its business, which is currently the subject of a private equity backed takeover offer.
"Today's decision by Ramsay is an affront to Australians who are facing growing cost of living pressures."
The past few years, Mr Rajcany, explained had come at a significant cost to hospitals as "they played an important role in the COVID-19 response".
Conversely, he said, "health insurance companies posted significant accumulated profits".
Need to look into your health insurance?
The Private Health Insurance Act 2007 includes 'portability' rules to protect consumers who want to change to another hospital policy with the same insurer or with another insurer.
This means that you will not have to wait the normal waiting periods again before benefits can be paid.
For further information, please access a copy of the government brochure "Right to Change" or download it here.
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