The medical insurance world has not responded well to Defacto’s new private medical insurance (PMI) star rating system, with the Association of Medical Insurance Intermediaries (AMII) saying the scheme could be “highly dangerous”.
Defacto released its first Star Ratings for the PMI industry last week alongside the organisations existing protection categories.
AMII’s chairman, Andrew Tripp, went so far as to say his members were “bemused” with the idea of using a star system to rank PMI.
“Our members, all of whom are specialist independent healthcare intermediaries with considerable expertise in PMI, are bemused by Defaqto’s ranking of PMI products.
“For example, we do not understand how a budget plan with little out-patient cover can be given the same 3 stars as other full out-patient products, it doesn’t make sense.
“PMI is an extremely complex product and really does need specialist advice so that the product bought really is suitable and appropriate to an individual’s personal circumstances and wishes.”
The main concern Tripp raised with the rating system was the complexity of the product of health insurance, and that it is not possible to fit the mass of variables and infinite unique circumstances which people have into a simple star rating.
“Type of cover, fully comprehensive v policies with exclusions, cover for cancer treatment, levels of excess, pre-existing conditions, hospital choice are just a few of the factors that need consideration.”
Tripp finished by saying the scheme does not have the support of his association.
“Introducing simple star ratings to PMI products is highly dangerous and not in the best interests of consumers.”
