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Families to pay for Medicare overhaul

13 Aug, 2008 04:15 PM
Families would fork out $70 more a year for private health insurance as a result of a controversial decision by the Federal Government, the ''father of Medicare'' said yesterday.

Australian National University professor John Deeble said individuals would also pay about $45 extra annually for health cover.

Health Department deputy secretary David Kalisch admitted Australians were likely to pay more for private health insurance in the wake of changes to the Medicare levy surcharge.

But premium increases would be ''considerably lower'' than the 5 per cent rise predicted by economists and Professor Deeble.

Professor Deeble and Mr Kalisch were two of several witnesses who gave evidence yesterday to the Senate Economics Committee.

The committee is conducting an inquiry into the Government's change to the Medicare levy surcharge imposed on some people without private health cover.

The Government intends to lift the thresholds by $50,000, which means singles can earn $100,000 and couples can bring in $150,000 before they pay the surcharge.

Critics including the Australian Medical Association argue it will intensify pressure on the overstretched public hospital system, encourage people to dump their private health cover and drive up premiums.

Mr Kalisch said the Government's change would have a ''small impact'' on premiums.

''I have to say it's nowhere near the 5 per cent range that a number of people have talked about ... it's probably less than half that,'' he said.

Access Economics and Professor Deeble predicted premiums would increase by 5 per cent as a result of the changes.

Mr Kalisch said the department expected a ''modest'' impact on public hospitals.

Professor Deeble said public hospitals would treat about 100,000 more inpatients annually under the ''worst-case scenario''. And the bill for public hospitals would increase by about $360million a year.

Opposition health spokesman Joe Hockey said $360 million was a significant sum that could be spent on other health services. ''Anything that increases insurance premiums and increases the number of people relying on public hospitals must be seen as bad policy,'' he said.

Health Minister Nicola Roxon defended the change to the surcharge, saying many claims about the impact were exaggerated. ''If the insurance companies produce attractive, affordable policies, then people will continue to buy them,'' Ms Roxon said. ''Any premium increases will have to be approved by the Commonwealth, and I have made clear to the insurance companies that I will not accept their attempts to use this as an excuse to hike premiums.''

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When will the clowns in government realise that Australia either has to have a Public Health System or a Private Health System, they can not have both. For one to work, one must go.
Posted by Deebee, 13/08/2008 8:44:35 AM
I am a semiretired Pharmacist DOB 16/02/1941 and have sen many changes come and go throughoutthe years most BAD and eventually changed.I would like to know what the Beauracat costs are of administiring the total Medicare scheme and how much is paid to the Pharmacists for their services and suppling the medications this would probably only obtained by a question in Parliament to the relevant Minister.Possibly Google could arrange this
Posted by David, 13/08/2008 9:52:46 AM
Let's be clear. This policy is intended to hurt those with private insurance and force them into the public system. It is bloody minded socialism at its worst. Private education will be next. Thank you voters of Australia.
Posted by Darren Bird, 13/08/2008 10:34:06 AM
I don't care if my private insurance doubles, I'd get another job to pay for it. Until you are butchered and treated like hell in a public hospital you have no idea what it's like. The doctors in public hospitals are overstretched but a lot of them are also there because they're so incompetant that a private hospital would not take them. The entire NSW medical system needs to overhauled.
Posted by stevf, 13/08/2008 10:45:11 AM
The medicare levy itself should be increased to 1.6% this would equate to $6.40 a week for the average worker but this would give an extra 2.4 billion this would fix all medicares problems in an instant.
Posted by len of wellington, 13/08/2008 10:51:23 AM
The only reason alot of people took up health insurance was because of the tax rebate, some even believed they had no choice. If the tax rebate for Private health insurance was dropped that money could instead be spent on the public hospital system. As for private education we are one of the very few countries in the world where governments fund it.
Posted by jayell, 13/08/2008 11:04:31 AM
DeeBee you've missed the point here - Medicare was setup vastly on basis of a 11yr old girls dream (at the time) to have 'health care for poor people'. Unfortuantely, funding has not kept up with what is required to support the model - and we have found that more 'affluent' Australian's are utilising this system when they could easily utilise services available in private health insurance. Yes - the Medicare Levy Surcharge needs to increase. Public health funding has been slashed under both the Keating and Howard governments. Wages are not what they were back in he early/mid 80's.. Time to get back to 2008 rates..
Posted by u3240456, 13/08/2008 11:16:15 AM
There have been large increases in health insurance premiums every year and now all of a sudden the increase is due to new govt policy instead of the rising cost of providing health services such as it's been for the last 10 years or so. People get real. You've had increases every year until now so why would you expect anything different this year.
Posted by Mark, 13/08/2008 11:22:26 AM
Every Australian deserves the best medical treatment available, get rid of private cover and put money into a universal health system that does not discriminate on age, wealth or position. I do not think there is any one out there that does not want Health, Education and Dental service improved to a high level standard and be available for everyone. These are are right by all Australians not a gift by bureaucrats who only think of the bottom line.
Posted by bob french, 13/08/2008 12:19:33 PM
u3240456, the tax system was set up on the promise that every Australian would have an old age pension...things change. Me, I took up health cover when the rebate came in but most of my friends whose incomes have only now past the $50,000 barrier have held off and now say there is no incentive to get it. These are people whom I had convinced before this policy change that it was worth while as in real terms, if you compared annual premium with the amount they would be paying in the surcharge, they were getting private health for very little money. It is young singles without kids that are reaccessing health cover know it has become more expensive, ie you cant save yourself the surcharge by getting it so the cost of private health to the individual has actually increased by the amount of the surcharge
Posted by neils, 13/08/2008 12:48:45 PM
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