The federal government hopes health insurance premiums won't rise as quickly after it changed the pricing for thousands of medical devices.
Inflated prices for private patients for devices such as pacemakers, lenses, knees and hips will be scaled back at a $500 million cost to taxpayers over six years.
"It's now time for insurers to deliver on their promise to substantially lower premium increases for their customers next year," Health Minister Sussan Ley said in a statement on Wednesday.
The Medical Technology Association of Australia was disappointed there would be a 7.5 per cent cut to the price of artificial hips and knees and 10 per cent to cardiac and ophthalmic devices.
Spokeswoman Andrea Kunca said the cuts would have an impact on jobs in the sector, research and development and a loss of local manufacturing to overseas countries.
