Government Proposals The Destruction Of Medicare: ALP

This is the text of a statement released by Stephen Smith, the ALP's Shadow Minister for Health and Ageing.

Three Government proposals revealed today would lead to the inevitable destruction of Medicare.

Proposal One: An end to bulk billing – allowing co-payments direct to the doctor

The proposal to allow patients to make co-payments direct to their doctor would mean an end to bulk billing.

John Howard has reduced bulk billing for GP visits from more than 80% in 1996 to less than 70% today – all in the space of seven years.

Allowing doctors to charge a co-payment and also to receive the rebate direct from Medicare would mean an effective end to bulk billing.

Proposal Two: Gap insurance for GP fees

The proposal for private health insurance funds to insure GP ‘gap' costs will lead to a two-tier system in which access to a GP is based not on health, but on wealth.

Knowing that health funds will be able to cover the gap for those people who have private health insurance, GPs will be free to charge even more for a trip to the doctor.

This will lead to even greater increases in GP out-of-pocket expenses.

Under the Government's plan, those who could afford GP gap insurance will be able to visit their GP for free.

People who qualify for the "safety net" bulk billing would also be able to visit the doctor for free.

But everyone else – millions of Australians in the middle – will be faced with having to pay even more for a trip to the GP.

Proposal Three: Restricting bulk billing to Health Care Card holders

Senator Patterson yesterday revealed just who will qualify for bulk billing under the Government's new plan – only those Australians who have Health Care Cards.

Speaking on ABC Radio in Melbourne yesterday, the following exchange occurred.

Jon Faine: This is a key issue, Senator Patterson; define low income. In the phrase you just used, you say it's of concern for people on a low income. What's, to you, the acceptable level?

Patterson: Well, I see a … I have a concern that two people on a similar income, particularly those on a low income, living in two different parts of Australia, one has access to a general practitioner who doesn't charge a gap, and one doesn't. And I feel that's an important issue.

Presenter: But are you saying low income to you means pensioner?

Patterson: Low-income people usually have a Health Care Card.

Currently, there are only around 1.5 million Health Care Card, and eligibility for the Health Care Card cuts out when the family income exceeds around $30,000.

Under the Government's plan, a Medicare Card will mean nothing for families earning more than about $30,000 per year.

Unless you have a Health Care Card, you'll be paying for your health with your credit card.

John Howard's real agenda has always been to destroy Medicare and bulk billing.

As Leader of the Opposition, John Howard said:

"Medicare has been an unmitigated disaster."

"We'll get rid of the bulk-billing system. It's an absolute rort."

"We will be proposing changes to Medicare which amount to its de facto dismantling…we'll pull it right apart."

These three proposals for the health system are the realisation of John Howard's vision for health and can only lead to one thing – Medicare becoming a second class safety net for the poor and everyone else paying more for the health care on which they have come to depend.

These proposals return John Howard to the scene of his public policy crime in the 1980s – the destruction of Medicare.