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AMA Advocates for Regulatory Reforms to Curb Health Insurers' Market Power

AMA Advocates for Regulatory Reforms to Curb Health Insurers' Market Power

The Australian Medical Association (AMA) has recently highlighted concerns regarding the substantial market power wielded by private health insurers and its potential adverse effects on patient care and healthcare costs.
In a position statement released on 4 February 2026, the AMA emphasised the need for regulatory reforms to prevent insurers from exploiting their dominant positions in the healthcare sector.

According to the AMA, the current regulatory framework permits private health insurers to engage in practices that may limit patient choice, increase out-of-pocket expenses, and compromise the quality of care. These practices include imposing restrictive contracts on medical practitioners and influencing clinical decisions, thereby undermining the autonomy of healthcare providers and the rights of patients.

Dr Danielle McMullen, President of the AMA, stated that the lack of regulation in contracts between insurers and medical practitioners has been overlooked by successive governments. She expressed concern that this oversight negatively impacts patient choice, quality of care, and the clinical autonomy of doctors in private practice.

The AMA's call for action underscores the importance of establishing a more balanced relationship between private health insurers and healthcare providers. By implementing appropriate regulatory measures, the aim is to ensure that insurers do not misuse their market power to the detriment of patients and the broader healthcare system.

For healthcare professionals, particularly those in the allied health sector, these developments are significant. The AMA's advocacy for regulatory reforms seeks to protect the interests of both practitioners and patients, promoting a healthcare environment where quality care is prioritised over corporate interests.

As the situation evolves, it is crucial for healthcare professionals to stay informed about potential regulatory changes and their implications. Engaging with professional associations and staying abreast of industry developments will be essential in navigating the shifting landscape of private health insurance and its impact on the healthcare sector.

Published:Saturday, 14th Feb 2026
Source: Paige Estritori

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Depreciation:
The reduction in the value of an asset over time, used in insurance to calculate the actual cash value of property.