Last December, the Australian Competition and Consumer Commission (ACCC) proposed to authorise Honeysuckle Health to form a buying group to collectively negotiate and manage contracts with healthcare providers on behalf of private health insurers and other health care payers. ^[1]

It is important to point out that Honeysuckle Health was set up two years ago in a joint venture between the private health fund nib and the Cigna Corporation, a multinational managed healthcare and insurance company based in the US. ^[2,3]

If this authorisation goes ahead, despite the opposition of the AMA and medical groups, it could result in less choice for patients, inferior care, no premium relief for fund members and a less competitive market.

I have been very critical of the ACCC for its draft decision, which has disregarded widespread concerns about the potential for this authorisation to further embed the costly and inefficient US-style system of managed health care in Australia.