Lobby groups back plan to "simplify" health insurance

THE Coalition's plan to "simplify" private health insurance, which is held by more than 13 million Australians, has been backed by two key lobby groups.

Health Minister Sussan Ley said yesterday that if re-elected, the Turnbull government would make policies, billing and standardised medical terms easier to understand.

Australian Private Hospitals Association chief executive Michael Roff said 40% of health fund members did not know if their policy excluded cover for key services and this situation "has to change".

"APHA has long campaigned on behalf of consumers for a simpler system of private health insurance," Mr Roff said.

"We know there is a great deal of confusion about health insurance policies.

"Too many Australians are paying for policies that don't meet their needs, but don't find out until they are in a health emergency."

Private Healthcare Australia chief executive Dr Rachel David said the plan would make it easier to "choose and use" health insurance.

"Health funds have committed to invest considerable time, money and effort into facilitating an industry-led solution to make it easier for Australians to choose their health insurance, through using common clinical terminology and clear information to enable our members to better navigate the private health system," she said.