31 October 2017 - Private health insurers are under pressure to limit their annual fee increases to the Consumer Price Index following government-led reforms that saw the industry win $1.5 billion in savings on the cost of medical devices.

At a Senate inquiry into health insurance on Tuesday, the Medical Technology Association of Australia (MTAA) said given the "significant" cuts to the cost of devices on the prostheses list, it would be "reasonable" to expect premium increases of 2%, rather than the 5% or so seen each year.

It also said that with $6.4 billion in taxpayer subsidies funnelled to health funds each year, the Australian National Audit Office should scrutinise the insurers' books to ensure the savings are passed on to customers.

"The industry has estimated that every $200 million in cuts to medical devices would shave 1% off premiums," said its chief executive Ian Burgess.

Read Sydney Morning Herald article