MEDIBANK has pulled the plug on its contract with Calvary Health Care, leaving thousands of Wagga customers with no fully-funded private health option.
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Members of Australia’s largest private health insurer will not be fully covered for the majority of health procedures from August 31, unless a 11th hour mediation sees a resolve.
The issue arose after Medibank refused an increase request from Calvary.
Medibank Medical Advisor Ian Boyd said the insurer was committed to reaching an agreement but would not settle with terms that left its customers worse off.
He said if an agreement was not reached and the contract terminated, customers would still have a “sizable portion” of their hospital costs covered.
He could not confirm what that percentage would be.
“We are doing everything we can to reach negotiations with Calvary Health Care,” Dr Boyd said.
Mediation between Calvary Health Care and Medibank is expected to take place on July 21.
Dr Boyd did not expect Medibank’s decision to backfire and result in a large loss of customers.
“We realise the cost of private healthcare is becoming a bigger issue for our customers," he said.
“We are doing everything we can to keep private health affordable and Calvary has not been able to reach that agreement."
A Calvary spokesman said in a statement the hospital hoped to negotiate with the health fund.
“Calvary is surprised and dismayed at Medibank Private’s action to initiate termination proceedings against it today,” he said.
“To our knowledge, we were of the strong view that both parties were continuing to negotiation in good faith with a desire by each side to renew our contract. Calvary remains committed to a mediation process and looks forward to resolving this as soon as possible.”
A Medibank spokesman refused to disclose how many of its customers were based in the Riverina.
He said that 1800 of Medibank’s Riverina customers had been admitted to Calvary facilities in the last 12 months, claiming this was a small percentage.
Medibank said nearby alternative Medibank contracted hospitals were Regional Imaging Cardiovascular Centre, Wagga Endoscopy Centre and Riverina Cancer Care Centre. All of these are specialist facilities and do not offer the range of services that Calvary does.
