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Govt urged to change rules on practitioner payments
MLC Life has added its voice to the growing chorus of insurance company voices calling for the Government to lift the current prohibition on offering payments to medical practitioners to help people rehabilitate and get back to work sooner.
MLC Life's submission to the Parliamentary Joint Committee reviewing the Life Insurance Industry threw its weight behind the Financial Services Council (FSC) calls for the removal of regulatory barriers that enable life insurers to offer targeted rehabilitation payments.
"We believe there are clear public policy benefits associated with life insurers being permitted to fund medical treatment in certain circumstances," the submission said. "There is substantial evidence demonstrating the link between disablement and lower rates of labour force participation."
It said there was clear evidence that the longer an individual was away from work due to an injury or illness, the less likely it was they would return to employment.
"So while there are clear commercial motivations for life insurers to fund rehabilitation, helping income protection and group salary continuance customers resume paid employment, the lower the cost to the insurer and ultimately our customers. In fact, through early rehabilitation insurers are able to create shared value for individuals and for society as a whole," the submission said.
"Employed people are healthier, enjoy better standards of living and experience greater levels of life satisfaction. They are also far less likely to be in receipt of welfare support. Finally, at the macroeconomic level, an employed person is contributing to economic productivity of the Australian nation."
"We therefore believe there are clear benefits to be obtained if insurers are able to fully assist their claiming customers to return to work. It is therefore in the national interest for all parties with an interest in a person's health status be permitted to work together to maximise the chances of a return to employment," the submission said.
"We urge the committee to consider if current prohibitions to life insurers offering payments to medical practitioners for the purpose of rehabilitation and return to work remain appropriate. We believe it is possible for restrictions on such payments to be modified without undermining the principles that sit behind the prohibition."
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