FED: Dispute over no gaps cover no threat to future

AAP General News (Australia)
12-14-1998
FED: Dispute over no gaps cover no threat to future

CANBERRA, Dec 14 AAP - The dispute over Australias largest no-gaps health insurance was a
sign of the cultural change needed to introduce the new type of insurance, the federal
government said today.

Obstetricians are threatening to withdraw from National Mutual Health Insurances Ezyclaim
scheme over additional payments for complicated deliveries.

The dispute coincided with federal parliaments approval of a 30 per cent rebate for
private cover on the condition funds promote no-gap or known-gap products.

A spokesman for Health Minister Michael Wooldridge said it would be uncharitable to suggest
the dispute threatened the development of these products.

"I dont think people should underestimate the problems that this whole thing poses for the
profession," the spokesman told AAP.

"It is a whole change of culture.

"People should give them time to work it out."

Ezyclaim began in February with the support of the National Association of Obstetricians
and Gynaecologists but the funds decision to absorb increased Medicare rebates for
complicated deliveries angered doctors.

Medicare last month raised the payment to doctors for difficult births from $400 to $950,
equal to the Ezyclaim cover, but obstetricians said National Mutual Health should continue to
pay a $550 supplement on top of the Medicare scheduled fee.

Dr Wooldridges spokesman said the fund and obstetricians had indicated the matter could be
resolved.

"They have indicated they believe they can resolve this temporary setback," the spokesman
said.

"They have to work it through."

AAP kaw/mfh/bjm/br

KEYWORD: INSURANCE WOOLDRIDGE

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