MEDIBANK'S management is to blame for its “failure to save for a rainy day”, not its customers seeking to use their health insurance to access the best and latest medical devices, Medical Technology Association of Australia Ian Burgess said today.

Mr Burgess said Medibank’s attempts today to blame medical device usage for its alleged profit downturn flies in the face of APRA data released Tuesday, showing insurer net profit after tax (NPAT) was up 21 percent in the December 2019 Quarter from $1.19 billion to $1.44 billion.

Medibank also failed to declare today the upwards of $400 million in direct medical device savings Health Minister Greg Hunt had already delivered private health insurers since 2017.

“It’s comments like these from Medibank today that are destroying consumer and investor confidence in their own products and performance, as well as the broader sector. No wonder they’re in a self-proclaimed ‘death spiral’,” Mr Burgess said.

“Private health insurers haven’t paid one extra cent for medical devices over the past two premium years, despite raising premiums twice-inflation and banking nearly $1 billion in profits between the big corporate health funds, including Medibank.

“It’s not the role of medical devices to keep propping up Medibank’s managerial inaction and incompetence, while they continue to feather their nest with taxpayer handouts and corporate bailouts,” Mr Burgess said.

“Medibank’s management seems to routinely fail to understand that timely access to the best and latest medical devices is exactly why their customers put up with years of premium pain. Reducing access will only reduce customers. 

“Medibank’s customers have clearly had enough of their premiums increasing faster than house prices with no matching increase in benefits and are finally cashing in their chips before they’re forced out altogether.

“If Medibank can still afford to pay a dividend to its shareholders, it can afford to drop its prices for its customers.”

Mr Burgess also questioned why there was no mention in Medibank’s statement today of the benefits that were about to flow through from recent price cuts on February 1, 2020 to over 7000 medical technologies like pacemakers, insulin pumps, eye lenses, hip and knee replacements and more.

“Medical device manufactures have cut their prices upwards of 40 percent in the past three years as a result of the direct lobbying of insurers like Medibank to help reduce premiums and increase access,” Mr Burgess said.

“It’s a safe bet that the first private health insurer whose premium increases go below zero will increase their market share overnight.

“The number of Australians dropping out of private health insurance is quickly snowballing into an avalanche and it’s time for government to step in and save private health from itself.”

Recent research from YouGov-Galaxy show over 2 million Australians dumped their private health insurance in the last five years.

Yesterday’s APRA figures confirmed this trend was continuing, with only 44 percent of the country now covered.

About MTAA

The Medical Technology Association of Australia (MTAA) is the national association representing companies in the medical technology industry. MTAA aims to ensure the benefits of modern, innovative and reliable medical technology are delivered effectively to provide better health outcomes to the Australian community. MTAA represents manufacturers and suppliers of medical technology used in the diagnosis, prevention, treatment and management of disease and disability. The range of medical technology is diverse with products ranging from familiar items such as syringes and wound dressings, through to high-technology implanted devices such as pacemakers, defibrillators, hip and other orthopaedic implants. Products also include hospital and diagnostic imaging equipment such as ultrasounds and magnetic resonance imaging machines. MTAA members distribute the majority of the non-pharmaceutical products used in the diagnosis and treatment of disease and disability in Australia. 

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MY BUSINESS HEALTH, a web portal designed to provide holistic support to small business owners, now features a dedicated section for those impacted by natural disasters.

The Australian Small Business and Family Enterprise Ombudsman Kate Carnell has been struck by the devastation of the recent bushfires, saying small businesses are dealing with extraordinary challenges right now.

“Small businesses in bushfire-hit areas are under enormous pressure and the difficult reality is that many will be in survival-mode for months to come,” Ms Carnell said.

“My Business Health offers simple and practical information to small business owners to help them get back on their feet.

“This includes the latest information on grants and loans being administered by state and territory governments and assistance with employer responsibilities, finances, insurance claims and tax.

“While some of these small and family business owners will be consumed with the recovery of their business – they may not be aware of the psychological distress they have experienced," Ms Carnell said.

“My Business Health was developed in consultation with leading mental health organisations including Beyond Blue and EveryMind. Our web portal now features links to Beyond Blue resources that deal with bushfire-related trauma specifically.

“Mental health is a serious issue for Australia’s small business community with the Productivity Commission finding the cost of absenteeism and presenteeism to the sector is over $17 billion per year.

“That figure is likely to be amplified in the wake of this bushfire season, so it’s really important that small business owners prioritise their wellbeing. Visiting My Business Health is an excellent starting point.”

www.asbfeo.gov.au

https://www.asbfeo.gov.au/my-business-health/home

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THE GSMA Board whas expressed its sadness at the unavoidable cancellation of MWC Barcelona 2020.

"This decision is painful, but we believe the correct one. Health and safety are the priorities of all of the GSMA Board and Mobile Network Operators. Our sincere thoughts are with those affected in China and around the world in these trying times," the statement read.

"Our vision at the GSMA is to unlock the power of connectivity so that people, industry and society thrive. MWC is crucial to convene and advance the industry and mobile ecosystem. The mobile industry is committed to harnessing the power of mobile technology and connectivity to transform the lives of billions of people around the world, and we are committed to a great MWC Barcelona 2021.

"The Board thanks GSMA management and the Host City Parties for their hard work throughout this challenging and unprecedented situation. We look forward to working together again for an even better MWC Barcelona 2021.

"The GSMA Board is comprised of 25 of the world’s leading mobile operator groups. www.gsma.com/aboutus/leadership/gsma-board

Further updates from the GSMA, are on our website and can be found on www.mwcbarcelona.com.

About the GSMA

The GSMA represents the interests of mobile operators worldwide, uniting more than 750 operators and nearly 400 companies in the broader mobile ecosystem, including handset and device makers, software companies, equipment providers and internet companies, as well as organisations in adjacent industry sectors. The GSMA also produces the industry-leading MWC events held annually in Barcelona, Shanghai and Los Angeles, as well as the Mobile 360 Series of regional conferences.For more information, visit the GSMA corporate website at www.gsma.com. Follow the GSMA on Twitter: @GSMA.

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THE AUSTRALIAN Parliament’s Joint Committee on Foreign Affairs, Defence and Trade has launched a new inquiry into strengthening Australia’s relationships with Pacific region countries to meet current and emerging opportunities and challenges facing the region.

Chair of the JSCFADT, Senator David Fawcett noted that the committee was considering Australia’s engagement in the Pacific through the lens of Defence, Trade and Human Rights, in addition to this inquiry. 

Chair of the Committee’s Foreign Affairs and Aid Sub-Committee, Dave Sharma MPsaid the inquiry will seek to inform and shape the next chapter of Australia’s strengthened engagement with its Pacific neighbours.

“Australia’s relations with our Pacific neighbours are of fundamental importance and vital interest to Australia,” Mr Sharma said.

“This inquiry will provide the committee with an opportunity to assess the effectiveness of initiatives undertaken to support the ‘Step-Up’, and explore mechanisms to support increased engagement with our neighbours, including through greater involvement of non-government and community organisations.”

The committee will be seeking ideas on how Australia can build on the momentum of the Pacific Step-Up to increase engagement and linkages with Pacific Island neighbours, in support of our collective interests.

The committee welcomes submissions from any person or organisation with an interest in these issues. It especially seeks views from within Pacific island countries, those who have participated in labour mobility schemes, and those who have made Australia their permanent home, yet maintain current connections with their islands of origin.

The views of those from non-Pacific island countries with development partnerships and interests in the region are also welcomed.

Submissions addressing all or some of the terms of reference should be lodged by Friday, April 3, 2020; overseas submissions due by Friday, April 17, 2020.

Further details about the inquiry, including terms of reference, contributing a submission and, when available, details of public hearings, can be obtained from the Committee’s website.

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