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Summer 2003

Medicare Plus Package a Fraud - Medicareplus - A minus for working families

The Federal Government’s watereddown Medicare changes announced in the Medicare Plus package will do nothing for working families according to the ACTU.

ACTU Secretary Greg Combet said that the changes do nothing to address the decline in bulk billing, which has fallen to 67.4% of GP consultations, and would still see an inequitable two-tier health system.

"The steady decline in general bulk-billing rates under the Howard Government is set to continue.

More and more average income earners will be forced to pay up front fees for GP visits," Greg Combet said.

"The planned new safety net will pay benefits to less than 5% of families. Many working people cannot afford private health insurance so will have to pay out-of-pocket costs in full."

"Forcing lower income families to pay $500 a year in health costs before they are eligible for a single cent under the safety net will be unfair in many cases."

"If people are bulk billed, they do not need a safety net.

The Government should rebuild buIk billing instead of replacing it with an unfair and inadequate safety net."

"Working people already pay for Medicare through the Medicare levy and their general taxes. They should not have to pay a third time because John Howard has dismantled bulk billing," Mr Combet said.

"Australia can afford a better public health system - the federal budget surplus for last year was $7.5 billion.

The Government should properly fund policies to rebuild bulk billing before implementing further across-the-board tax cuts."

The ACTU called on all non-Government Senators to ensure that bulk billing was not further undermined by the Howard Government's policies.

COMMONWEALTH FUNDING UNDER AUSTRALIAN HEALTH CARE AGREEMENT

The so-called 'Fairer Medicare bill' and the recently announced MedicarePlus package has caused public debate over Medicare to be focused on bulk billing. Whilst this is an important component of Medicare, free access to in and out patient services at public hospitals is also a critical part of the universality of Medicare and it is important that this is not overlooked.

Free access to health care via the public health system in Australia is jointly funded by the Commonwealth and State Governments via the Australian Health Care Agreements.

These are five year agreements, and the latest agreement was signed by the State Governments under duress a month ago.

The latest Australian Health Care Agreement for Tasmanian resulted in a $40 million reduction in funding compared to what the State would have received had the terms of the last Agreement been extended.

That's $8 million less each year of the five-year agreement.

This reduction also needs to be considered in the context of the cost of running public health services increasing by around 8% per annum, the staggering speed at which new medical technologies are becoming available, and the cost of those technologies, and especially for Tasmania, the increasing demand for public health services by an ageing community.

If we go back and look at what the Fraser Liberal Government did to Medibank, it is very similar to what Howard has been doing to Medicare.

There is no doubt that the current Coalition Government would restrict free access to public health to pensioners and health care card holders if they could. But in typical Howard style he will do it via the back door. It will be a combination of inadequate funding, the introduction of user pay or co-payments for public hospital services as he is doing for GP consultations.

AN AMERICANISED HEALTH SYSTEM

The position of the Howard Government of giving people choice by making them responsible for paying for their health services is the ideology that underpins the American Health System.

In reality the American health system is a disaster unless you have a decent income and can afford to pay for your health services.

It is estimated that there are in excess of 45 million people in the US who have no health insurance. That is, they must pay for medical care out of their own pockets.

It is estimated that 1/3 of uninsured Americans, approximately 15 million people, go without needed medical care.

83,000 Americans die every year because they have no health insurance and cannot afford the health care they need. Being uninsured is the seventh leading cause of death in the US.

MEDICARE AND THE AUSTRALIAN PUBLIC

Polls show that the Australian public love Medicare - and for very good reason. Tasmania has a very good public health system but it is under pressure.

A recent (June 2003) Morgan Research Poll showed that Australians believe that the Federal Government should be doing more to improve health.

When asked what were the three most important things the Federal Government should be doing something about, only 21% of respondents saw defence and national security as major priorities for the Government, but 62% thought health should be the highest priority.

Education came in second with 55%.

In 2001-2002 the Health Insurance Commission reported that public satisfaction with Medicare specifically was running at 90%.

There is no doubt that health is looming as one of the major domestic issues for the next election.