Doctors' warning — Bupa's plans risk a US-style health model
Friday, 23 May, 2025
The Australian Medical Association () has called 鈥渁ggressive vertical integration plans鈥澛燽y Bupa聽鈥渁 major red flag for Australia鈥檚 private health system鈥, which it says is now at risk of a US-style health model. AMA points to the health insurer鈥檚 reported plans to expand its own network of medical centres by a further 130 and create 60 of its own mental health clinics, with AMA President Dr Danielle McMullen saying that Bupa鈥檚 reported agenda to funnel 25鈥30% of the cases that it manages through its own 鈥渆cosystem鈥 of Bupa-controlled facilities raises serious questions about conflicts of interest.
鈥淲e are concerned Australia is hurtling towards a US-style system of vertically integrated managed care, where health funds have too much say over the clinical care that patients receive,鈥 McMullen said. 鈥淚t is crucial that we avoid a scenario where profits are put before patients, like we have seen happen in the US with disastrous results. Clinical decisions must remain in the hands of doctors and their patients 鈥 not influenced by insurers or corporate ownership 鈥 so that care is guided by need, not by financial incentives.鈥
Already owning 22 medical centres, 50 optical stores and 180 dental clinics in Australia, Bupa is not the only insurer pursuing this type of 鈥渁ggressive agenda鈥, according to the AMA. It also pointed to Medibank as an insurer that has been increasingly moving to own or have a share in health services. The AMA also said there is little that can be done to stop this 鈥渕arch鈥 by insurers in the current regulatory environment, as private health insurers setting up, taking over and owning health service delivery businesses is allowed under current health legislation.
鈥淭he conflict of interest in an insurer both funding and delivering care is incredibly obvious 鈥 and while these insurers will use spin to explain away these concerns, it is vital the new government moves quickly to address this, including through the establishment of a private health system authority to oversee the sector,鈥 McMullen said. 鈥淧atients should be very worried when private health insurers are setting up an environment where they are potentially able to access more information than ever before about a patient鈥檚 health and interfere with decisions that should be made by a patient after talking with their doctor in the safety of a private consultation.鈥
The AMA said that plans by Bupa to roll out whole-genome sequencing for selected customers in Australia have it 鈥渄eeply concerned鈥, with McMullen stating, 鈥淧atient gene information is not to be taken lightly, and it is too risky to give this to insurers, who could use it to quietly bypass existing community-rating legislation that requires private health insurers to charge Australians the same price for any given private health insurance product, irrespective of their medical risk.鈥
She added, 鈥淲hile the federal government has promised to pass legislation that would ban the use of adverse genetic test results in life insurance underwriting, this has yet to happen.鈥
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