The Americanisation of Australian health insurance has begun. The Defence Health insurance fund that “since 1953” has operated “to protect the health of those who protect our country” and “support the families of those who defend our country” has now banned its members from all Healthscope medical facilities including some excellent private hospitals.

Records show that just prior to Christmas, members received an email from Defence Health that laid the blame on “the foreign-owned Healthscope hospital group” that “cancelled its contract with Defence Health and other Australian Health Service Alliance health funds”. Healthscope is Canadian.

Accordingly, the inviolable right of Australians to choose their own doctors, specialists, emergency and hospital care has now gone the way of the US model—and the Defence Health website now warns members that they “may face significant out-of-pocket expenses” once the “transition period ends”.

UPDATE: March 12 2025—Healthscope Reverses Decision to Terminate Hospital Coverage with Defence Health

Three days after the March 3 deadline passed for Healthscope’s ban to come into effect, Defence Health CEO David Brajkovic announced that:

Before Christmas, I informed you that Healthscope was seeking to terminate its agreement with Defence Health and 20 other health funds. After further negotiations, I’m pleased to report that Healthscope has now revoked its notice of termination. This means Defence Health members can continue to use their hospital cover for in‑patient treatment at 38 Healthscope hospitals. I’m very pleased Healthscope will continue on our list of agreement private hospitals. Our goal is always to secure agreements that offer our members the widest choice of hospitals with quality services and the most affordable coverage.

The political ramifications of this ban were too blatant given the expected Australian federal election in May. One of the rare policy boasts of the Albanese Labor government has been to hammer the message of reduced health care costs and the expansion of access.

All private health funds are still set to raise their premiums in 2025.

© 2024, 2025 Adam Parker.