Health insurers want freedom to fund chronic disease management plans as hospital costs rise

Insurers could offer plans to help at-risk people avoid diabetes and prevent hospitalisation, parliamentary committee hears.

Private health insurers have repeated calls for an end to legislation restricting their role in funding chronic disease management care.

The issue resurfaced during the ongoing parliamentary inquiry into diabetes, where insurers flagged the money they were spending on diabetes care following hospital admissions.

It includes concern about a 17% increase since 2015 in the number of privately insured patients with diabetes making claims of more than $10,000 for hospital treatment.

Private Healthcare Australia said in one case a health fund had spent $127,500 to cover the cost of an elderly patient who spent 77 bed days in hospital.