16 Mar Making Private Maternity Care More Affordable: A New Proposal for Expecting Parents
Health insurers are now proposing a new way to make private hospital births more affordable and accessible, giving families more choices when it comes to pregnancy care.
The Cost of Private Maternity Care Is Rising – Here’s How It Could Change
If you’re expecting a baby and considering a private hospital birth, you may have noticed that the costs can be overwhelming. Many parents-to-be love the idea of having their own doctor, continuity of care, and a private hospital room. However, with out-of-pocket costs exceeding $6,500 in some cities, many families are being priced out of private maternity care.
How Private Maternity Care Works Right Now
Currently, if you choose to give birth in a private hospital, you need to pay a private obstetrician directly for your care. This covers pregnancy check-ups, scans, and the delivery itself, but it often comes with hidden costs that aren’t clear at the start. Many parents find themselves paying unexpected fees for consultations, pathology, and additional services along the way.
Right now, health funds can only pay for in-hospital care. That means they can’t cover your pregnancy management before birth if it’s provided by a private midwife or GP. As a result, families who might prefer midwife-led care or a shared-care model often can’t access these options in the private system.
The New Proposal: More Choice, Lower Costs
Private Healthcare Australia (PHA), which represents health insurers, is calling for changes that would allow health funds to support more affordable maternity care options. Their proposal includes:
- Midwife & GP-led Care in Private Hospitals– Families could choose to have their pregnancy managed by a midwife or a GP with obstetric experience, rather than solely by an obstetrician. This model is already successfully used in public hospitals, particularly for low-risk pregnancies.
- Fixed Costs for Families– A single, upfront fee would replace the current system of unpredictable, separate charges. Expecting parents would know exactly what they will pay for private maternity care from the start.
- Bundled Payment System– One lead practitioner (a midwife, GP, or obstetrician) would coordinate all care and provide a single bill, removing ‘drip pricing’ where families face additional charges at every stage.
- Health Funds & Government Support– Health insurers and the government would each contribute at least $3,000 per pregnancy to help reduce out-of-pocket costs for parents.
What This Means for Expecting Families
This proposed model would give parents-to-be more control over their care, allow for more affordable private hospital births, and ensure that families aren’t blindsided by unexpected fees. It could also help take pressure off the public hospital system by making private maternity care a viable option for more Australians.
If approved, these changes could transform private maternity care, making it a more realistic and affordable choice for families who want high-quality care without breaking the bank.
