Julia Gillard and Tony Abbott have clashed over the Medicare safety net after the Prime Minister refused to rule out making more cuts to the scheme that was introduced by the Opposition Leader when he was health minister.
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Ms Gillard refused to be drawn yesterday on whether the government would impose new caps on the safety net which is designed to meet up to 80 per cent of out-of-pocket costs for people with high medical expenses. Labor has previously changed the safety net to cap payments for procedures in areas such as obstetrics and IVF treatments.
Ms Gillard said the safety net had been badly designed, requiring the Howard government to make cuts soon after it was introduced.
''Badly designed because it was possible for some people to make a lot of money out of the Medicare safety net,'' she said.
Ms Gillard said the government had a strong record on improving the health system, pointing to changes to the Pharmaceutical Benefits Scheme which will reduce the prices of some medicines by as much as $15 per prescription.
Mr Abbott said more restrictions on the Medicare safety net would add to the cost-of-living pressures experienced by families who required a lot of specialist medical care.
''The Medicare safety net kicks in when families have very high out-of-pocket expenses and I think people who have got high out-of-pocket expenses should be protected, not hurt by a responsible federal government,'' he said.
Mr Abbott dismissed questions about whether more savings should be found from the safety net.
''I have the copyright on the Medicare safety net, it is very, very good policy and it should not be further damaged by this government,'' he said.
Australian Medical Association president Steve Hambleton said the safety net was important for families and people who were hit with large medical expenses, but the thresholds for qualifying were too high.
Dr Hambleton, a Brisbane GP, said many of his patients had benefited from the safety net, including a couple who had premature twin babies.
''They came out of hospital and needed to see their pediatrician on a regular basis, had to see the obstetrician for follow-up, they were seeing me, pathology, radiology, investigations and it was really good for that family,'' he said.
''And that's exactly what it was meant for.''
Ms Gillard and Mr Abbott were both in Canberra yesterday, with the PM visiting the new Woolworths supermarket at Majura Park to launch a joint program with the retailer to create thousands of jobs.
Mr Abbott arrived at lunch time on his bicycle after participating in the eight-day Pollie Pedal charity ride, which raised $500,000 for Carers Australia.
