Independent watchdog proposed to address Australia’s private health system concerns

Independent watchdog proposed to address Australia’s private health system concerns

15 Oct 2026

Independent watchdog proposed to address Australia’s private health system concerns

Several independent MPs have backed calls from the Australian Medical Association (AMA) and the Australian Society of Ophthalmologists (ASO) for an independent body to oversee Australia’s private health system.

Andrew Wilkie MP introduced a motion in federal Parliament on Monday, supporting a proposal first put forward by the federal AMA in 2020. He said rising private health insurance costs and falling value were leading hundreds of thousands of Australians to reduce their cover, despite private hospitals carrying out more than two-thirds of planned surgeries nationwide.

Dr Monique Ryan MP seconded the motion.

The proposed authority would sit within the health portfolio and check whether contracts between private health insurers, hospitals and doctors are fair. It would also monitor the sector’s financial health, including insurance premiums and the viability of regional hospitals.

The body would assess how insurance arrangements affect patient choice and clinical care in practice, rather than relying on insurers’ stated intentions. It would also advise the government on improving insurance coverage and supporting the safe expansion of healthcare services outside hospitals.

AMA President-elect Dr Michael Bonning said an independent authority was urgently needed to oversee the private health insurance sector.

The AMA first called for the body in its 2020 Prescription for Private Health Insurance policy.

Dr Bonning said Australians would continue to face the effects of outdated policies and inconsistent rebates without meaningful reform. He also warned that if private hospitals could no longer provide their current level of care, public hospitals would face further pressure.

He said an independent authority could bring key stakeholders together to support necessary reforms, protect the long-term viability of private healthcare and bring regulatory responsibilities spread across different government departments and agencies under a more coordinated approach.

Independent watchdog proposed to address Australia’s private health system concerns

Source: Australian Society of Ophthalmologists (ASO) and Australian Medical Association (AMA).