UnitingCare Queensland has reached a new financial agreement with Australia’s largest health insurance purchasing group after giving notice to terminate its contract last month.
Details of the agreement with the Australian Health Services Alliance (AHSA) have not been released and are “still being finalised”, a joint statement said.
The not-for-profit organisation which runs four Queensland hospitals gave less than a month’s notice to terminate its contract, leaving around half a million Queensland policyholders in limbo.
“We are very pleased to have been able to reach a fair and sustainable conclusion between AHSA and its member funds,” UnitingCare CEO Craig Burke said.
AHSA has more than two million policyholders, 570,000 of whom live in Queensland.
The ABC previously reported that if a new agreement is not reached by the end of November, AHSA members will lose coverage at UnitingCare Queensland hospitals.
UnitingCare runs Wesley Hospital and St Andrews War Memorial Hospital in Brisbane, Buderim Private Hospital on the Sunshine Coast and St Stephen’s Hospital in Hervey Bay.
The company is the second non-profit insurer to announce its separation from a major insurer.
Insurance policyholders are caught in the middle
Australian Medical Association Queensland president Nick Yim said in a statement the new financial arrangement was a “promising sign”.
“We urge both sides to return to the negotiating table in the interest of the health care system and the health of patients,” he said.
“The dispute is the latest in a long line of contractual disagreements that could leave policyholders from more than 20 insurers caught in the middle and facing increased out-of-pocket costs.”
Dr Nick Yim said the new financial agreement was an “encouraging sign”. (Offering)
“These disputes undermine Australians’ confidence in their private health insurance arrangements,” Dr Lim said.
“Especially as insurance premiums continue to increase substantially at a time when people are facing rising costs of living,” he said.
