Health insurers ordered to increase funding to private hospitals

06 March 2025

The Australian Nursing and Midwifery Federation (ANMF) is supporting the Albanese Government’s demands that health insurers pay a bigger share of their increased premiums to private hospitals or face potential regulatory action.

Last week, health insurers were granted approval to increase annual premiums for their members by 3.73 per cent, taking effect on 1 April. Health Minister Mark Butler has now directed that insurers have until June to increase their private hospital funding or face consequences, including potential regulatory action.

ANMF Federal Secretary Annie Butler welcomed the move to reform funding for the private hospital system in a bid to deliver better services and patient care, but said more needs to be done.

“Those increased premiums will reportedly deliver a $2.2 Billion* windfall to health insurers; the Government is justified in demanding that they provide extra money to private hospitals to ensure patients get best treatment and that those caring for them, often ANMF members, are properly remunerated and equipped to deliver best practice care,” she said.

“Private health services are an important complement to Australia’s public healthcare system, but right now they tell us they’re struggling. The ANMF believes the Government should regulate the quantum of funds that insurers must pass to private hospitals. We also believe that regulation must include a requirement to pay nurses and midwives properly and guarantee safe working conditions, including mandated ratios. This is what will benefit patients most.

“All players involved must act to put people before profits.”

*Estimated figure publicly sourced from the Australian Private Hospitals Association.

The ANMF, with over 345,000 members, is the industrial and professional voice for nurses, midwives and carers in Australia.

ANMF media release authorised by Annie Butler, ANMF Federal Secretary. 1/365 Queen St, Melbourne.

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