Medibank skips health insurance grilling

Medibank won't join other health funds to explain soaring private health insurance premiums at a parliamentary inquiry despite being the biggest player in the market.

The private health fund insists it can't make it for Thursday's public hearings although other major players Bupa, HCF and NIB are preparing to front the Senate inquiry in Canberra.

A Medibank spokeswoman told AAP senior executive Andrew Wilson was unable to attend because of a prior commitment but was able to make himself available "on another occasion if the committee chooses".

It comes as the Federal Court this week hears allegations from the Australian Competition and Consumer Commission that Medibank misled and deceived its customers by secretly changing policies to boost its profits before becoming a public company in 2014, leaving patients with unexpected costs.

The Senate inquiry is looking into rules that make medical devices such as pacemakers more expensive in the private system then the public system - often blamed by private health insurers as a reason for higher premiums.

Medibank has made a submission arguing the disparity between prices for public and private patients is detrimental to consumers, health funds and the federal government.

"Removing prostheses' price disparity would allow for real cost savings for consumers, savings Medibank is committed to delivering to our customers," the spokeswoman told AAP.

The medical device industry argues prices are higher in private hospitals because public hospitals buy much larger volumes and don't provide the same variety of devices to patients, meaning private hospitals can't leverage the same economies of scale.

But the Medical Technology Association of Australia has pointed the finger at private hospitals, arguing a review of hospital costs would likely generate substantial savings given they represent 70 per cent of the total cost, while medical devices make up just 14 per cent.

It argues the benefit paid by private health insurers for medical devices has not changed since 2005.

One of Australia's highest-paid health bosses, Ramsay Health's Chris Rex, is being threatened with a summons to appear as private hospitals ignore requests to front the inquiry.

Senior Labor figure Sam Dastyari has urged Mr Rex to stop "hiding".

Ramsay Health declined to comment.

Senator Dastyari says there needs to be more accountability from the private hospital operators, given the $6 billion of taxpayer funds handed to the industry.

"The (Ramsay) CEO gets paid $13 million a year and gave themselves a 20 per cent bonus last year and at the same time the cost of all their services keeps going up and up and up," he told Sky News.

"There is some really serious questions about how this money is being spent."