Hospital " Private Cover " Dilemma !

The whole purpose of taking out private cover health insurance was built around the notion that it was better to be able to choose the doctor of the patient's choice and have whatever procedure that was involved attended to in a private rather than a public hospital.

In the public hospital system, patients were attended by whichever doctor was rostered for that shift and apart from the ever present dilemma of waiting for a bed to become available, the amenities were far less than catered for in the private system.  Many private hospitals touted the " luxury " aspect of their facilities and promised a private room rather than accommodating patients in multi-bed  wards.

It comes as something of a shock to learn that today one in three privately insured maternity patients are choosing to have their babies in the public system, simply because the out of pocket expenses between what the private funds pay and the charges now applicable have ballooned out to ridiculous levels.   It is not uncommon for a woman giving birth in a private hospital to pay between $ 2,000 and $ 5,000 on top of the fund contribution.   Even in the best circumstances, a debt of at least five hundred dollars seems to be the bare minimum.

Maternity costs seem to be the lynch pin at the apex of this cost pressure and many health funds are discreetly encouraging women to drop maternity cover to make their policies affordable, and simply rely on the public system.  In 2005 the percentage of women giving birth in the public system was 69.8%  - today it is 72% - and rising.

It is quite apparent that many women are abandoning private maternity insurance cover and opting for policies that exclude this form of cover, and once again statistics tell a story.  In 2012 62% of combined hospital and extras insurance included maternity cover.  In 2015 this has dropped to just 31%.

It is impossible to accurately track costs across the private hospital spectrum, but generally a birth in a private hospital should be somewhere close to $ 8,500.   On top of that will be the charge by an obstreprician and doctors who have achieved fame in their field have been known to present a $ 10,000 bill, but that would be an extreme case.

Another influencing factor is the vast improvements that have been made to maternity services in the public system.  Old, archaic systems of yore have been brought up to private hospital standards and innovations such as water birthing are now common.   Most women of child bearing age are hearing complimentary stories from other women who have used the public system and this is reducing the incentives to risk a huge dent in their finances when a completely acceptable alternative is available - for free !

Unfortunately, this depletes the very reason that the government encourages private health insurance.  The fact that the public system is without charge means that is must cover a vast number of people and that would be an unsustainable load without the private system diluting this patient stream.
The whole concept of private health insurance was based on those who could afford the premium being rewarded with the choice of an attending doctor and being accommodated at a luxury level not possible in the public arena.

In maternity care, an imbalance has occurred.  Both the government and the medical profession need to urgently confer to get maternity costs back onto an even keel !