https://www.accc.gov.au
The ACCC has authorised
The authorisation has been granted with a condition that major insurers
"The arrangement is likely to have a public benefit by increasing competition between health services buying groups. We expect this is likely to result in better service and pricing provided by buying groups to smaller private health insurers, who will then be in a better position to provide reduced premiums and improved services to consumers," ACCC Commissioner
"If the buying group expands to more of the smaller insurers, we consider that
"However we were concerned about the potential effect on competition if the buying group involving
The ACCC carefully considered the concerns raised by interested parties, such as medical specialists, who opposed the authorisation, arguing that it would lead to 'US-style managed care'.
After an extensive investigation, the ACCC was not satisfied that granting the authorisation would result in the current Australian healthcare system changing to a US-style managed care model. In reaching this conclusion the ACCC took into account a number of healthcare regulatory restrictions and policy settings. The ACCC also noted that health insurers are currently engaged in the contracting practices proposed for the buying group, and that these practices are likely to continue even if the authorisation was not granted.
"We also concluded that the condition that excludes the major insurers from membership of this buying group, and the shorter period of authorisation, are likely to address concerns about the long term effects of the authorisation,"
The determination is available on the ACCC's public register at
Notes to editors
ACCC authorisation provides businesses with protection from legal action under the competition provisions of the Competition and Consumer Act for arrangements that may otherwise risk breaching those provisions, but are not harmful to competition and/or are likely to result in overall public benefits.
Background
Under its current Clinical Partners Program, nib enters into agreements with medical specialists to not charge customers out-of-pocket costs for medical services and treatment. The program currently is only available for knee and hip replacements.
nib is
These large health insurers manage their contracting services internally. The remaining private health insurers engage in collective bargaining through one of the two existing buying groups: 27 health insurers are part of the
nib was previously a member of AHSA and withdrew in 2011 when it built its own internal contracting function. From
In
.
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