AIA calls for life insurers to fund mental health treatment
AIA Australia and New Zealand chief executive, Damien Mu, has called for reforms to life insurance legislation to allow insurers to fund early intervention and treatment for mental health conditions.
Mu said the current legislation restricted life insurers from funding medical treatments for mental health conditions, and hindered the Australian healthcare system’s efforts to keep up with the fast-growing issue of mental health.
He said the current Parliamentary Joint Committee inquiry into early intervention services by life insurers should be a catalyst for the Government to accelerate changes to legislation.
“This inquiry is a positive first step and the Government and industry must work together to remove this anomaly from the health system so life insurers are allowed to pay for rehabilitation services and medical treatments for people who suffer from a mental illness,” said Mu.
Mu said this void in the healthcare system could be filled through funding medical treatments, but to achieve this, current legislative restrictions needed to be removed.
“The benefits are obvious; the most important one is helping Australians suffering from mental health issues when they need it,” he said. “Also where appropriate, helping people to return to work earlier, promoting a more sustainable life insurance industry, reducing the fiscal burden on Government – at a time when they are tackling the twin issues of an ageing population and shrinking workforce.”
AIA Australia’s data has shown that mental health has become a prominent issue for those aged 20 to 39, with a third of all claims related to mental health.
“AIA Australia processes tens of thousands of claims each month, so we get to see first-hand the consequences these conditions are having on society, with mental health conditions undoubtedly having a great impact on people’s lives,” said Mu.
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