MEDIA RELEASE | ASO Backs Transparency & Outlawing Product Phoenixing As New Bill Passes

Patients will finally be protected from disingenuous private health insurers, now that years of tireless advocacy have resulted in ‘product phoenixing’ being outlawed, as part of the Health Legislation Amendment (Improving Choice and Transparency for Private Health Consumers) Bill 2026, which passed Parliament on 16 September.

The Australian Society of Ophthalmologists (ASO) has cautiously welcomed the reforms, which also allow the Government to publish the fees individual specialists charge for common services, alongside typical out-of-pocket costs.

The bill is welcomed on the condition that the information seen is accurate, current, and properly explained.

“Product phoenixing," is where an insurer closes a policy and reopens a near-identical one at a higher price and requires insurers to seek Ministerial approval for premiums on new products and for changes that reduce cover or value.

ASO CEO Katrina Ronne said the ASO had supported the Bill's intent from the outset and was pleased to see insurer accountability written into law.

"We have always backed measures that genuinely help patients understand what they are paying for and why," Ms Ronne said.

ASO President Dr Peter Sumich cautioned that a fee published without context can mislead as easily as it informs.

"The fee for seeing a specialist reflects expertise, responsibility and the cost of providing a medical service in an inflationary small business economy," he said.

"With transparency comes attribution, and we believe patients will be shocked but not surprised when they see how little the private health insurers are contributing to specialist fees – it is absolutely appalling.

"For this to work for patients, the data must be accurate, current and presented with proper context."

ASO representatives are currently taking part in the Medical Costs Finder working group, consulting on how fee information is presented so patients receive a fair and transparent picture, including how much their private health insurer covers and contributes.

The ASO reserved its strongest support for the crackdown on insurers, an issue it has campaigned on for years.

"We especially welcome the move to outlaw product phoenixing," Ms Ronne said.

"We continue to see disingenuous behaviour from private health insurers towards both patients and the health care providers who deliver care.

“This is something the ASO has advocated on for many years, and we will continue to hold them to account."

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