Amid growing anger over changes to its medical gap scheme, health insurer Bupa says it has listened to “thoughtful” feedback and recognised its controversial plan was “catching the wrong thing”.

Bupa informed doctors last week that insured patients will only be eligible for gap cover if they are treated at a Bupa-contracted hospital (usually a private hospital) or day-stay facility.

The Australian Medical Association characterised the move as “one big leap towards managed care” and Health Minister Greg Hunt requested the Private Health Insurance Ombudsman to investigate the fund.

Bupa’s managing director Dwayne Crombie told Fairfax Media that following feedback from patients and doctors, especially in regional areas, they have tweaked their plans.

“The difference here is that if you go to a public hospital and you elect to use your private health insurance and it’s a booked or arranged admission we will continue to offer public hospital doctors the Bupa medical gap scheme and the whole point of that is it takes away the chance that you’re going to get an out-of-pocket,” he said.