The Medical Technology Association of Australia says the December quarter statistics from the prudential regulator "highlight once again" the impact of the cost reductions delivered through its agreement with the federal government.
The association said benefits paid for prostheses fell 4 per cent in the 12 months to the end of December with the average benefit paid for all prostheses down 12 per cent.
Compared to the September 2018 quarter, the cost of cardiac prostheses was down 1.7 per cent, hips 1.4 per cent and knees 1.1 per cent.
"This is a direct result of the $1.1 billion dollars in cuts that MTAA delivered through its Agreement, and a crucial demonstration of the significant contribution that MTAA is making towards affordable health care," said the association.
“The APRA data demonstrates that MTAA’s Agreement with the Commonwealth is delivering real and tangible outcomes through a reduction in costs for medical devices," said MTAA CEO Ian Burgess.
“Through $1.1 billion in cuts, we have demonstrated that the medical device industry is willing to work collaboratively with all stakeholders to deliver value and affordability to consumers.
“Cardiac costs down 1.7%, hip costs down 1.4%, knee costs down 1.1% - the medical device industry is delivering the savings it promised.
“It is now up to private health insurers to ensure that those reductions flow through to consumers, to provide continuing affordability and access to better health outcomes for all Australians.
“The medical technology industry believes access to a full range of medical technology is the most valuable component of a private health insurance policy and we’re committed to doing what we do best – assist patients lead healthier and more productive lives.”