Public and Private Health Hurt by Rebate Cuts
15 February 2012Private Healthcare Australia warns that an uncertain period lies ahead for Australia’s health system.
The passage of the means-testing legislation through the Lower House signals a shift in the balance of Australian healthcare.
The consequence of the Gillard Government’s decision to means-test the 30% Rebate is that Australians needing healthcare will be torn between increasing costs and longer waiting lists.
Private Healthcare Australia has consistently cautioned that means-testing the 30% Rebate will force people out of the private healthcare sector and into the public system, and it will force premiums up for those who remain in private cover.
The Government’s arguments are flawed. The Minister says means-testing is about fairness, but as people drop or downgrade their hospital cover, premiums will have to increase for those who remain in private cover.
More than half of the Australian population has some form of private health cover and they don’t think they’re rich. For many of them, the Rebate is the only form of Government assistance they receive.
Government figures show that 5.6 million privately insured Australians live in households with an annual household income less than $50,000 and, of those, 3.4 million have an annual household income of less than $35,000.
The Government has made many incorrect assumptions during this debate, like failing to consider the impact of people downgrading their private health cover, and not taking into account the flow on effects into the public hospital system of those people who drop and downgrade their cover.
The Independent Deloitte Report remains the most accurate assessment of the impact of this legislation:
- 1.6 million Australians will withdraw from their private hospital cover over 5 years and 4.3 million will downgrade to lower levels of cover;
- 2.8 million people will withdraw from their general treatment cover over 5 years and 5.7 million will downgrade their cover;
- premiums will rise 10 per cent above what would otherwise be expected;
- the costs of treating consumers in the public hospital system are expected to rise substantially above what is currently anticipated by Government (Deloitte estimates that additional operating costs over five years will be $3.8 billion); and
- the Report concludes that another 845,000 admissions to public hospitals will be required over the next five years.
Contact: Jen Eddy 02 62021000
* To view a PDF version of this press release, click here
Comments
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I wonder what ridiculous scheme this money grab back into the treasury funds will be wasted on this time!
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Having been defeated twice, with the vote of each mp be published so people can see what their MP did for them? I think not! Why not, they represent us, but then do not do as we ask. Waste of money for a pollie. Pollie with feathers would be more effective
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A pox on the independents and greens.
Bring on the federal election -
Tony Abbott has now committed to axing the means test if elected. Instead of talking to ourselves everyone should be sending e mails to Tony congratulating him on his stance and assuring him of their support. All parties should be made see support for the rebate is an election winner and lack of support dooms them to Opposition.It’s up to us voters to do that.
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I’m retired, my spouse is still working and our annual income is just under the max. cut-off limit, so that means effectively that we’ll lose the rebate altogether. Of course, once my spouse retires, we’ll be way back down the threshold again. Julia in Wonderland, this is just another thing you’ve stuffed up.
Mr. Rabbit, if you want our vote, you’d better make some core promises, and don’t be a juliar!
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I’m retired and my wife is still working towards hers. Our annual income is just under the max. cut-off limit, so that means effectively that we’ll lose the rebate altogether.
Mr. Rabbit, if you want our vote, you’d better make some core promises, and don’t be a juliar!
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Nothing new. Another broken promise. What next? We can only hope for an early election.
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the sooner the election, the better Joe.
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Another crap result of the Gillard government. After mining tax, this is another major FAIL.
Sure – let people pay more to be privately insured. What about the normal hard working family? They will notice it the most. Now already we have come to an era of high petrol prices, high living costs and rediculous housing prices. Both partners need to work and kids are left to their own or daycare. So let’s make sure they pay loads for private health too or have to rely on a unreliable public system.
More people will flow into the already overcrowded public system. With a shortage of doctors and nurses we are certainly doing the right thing…
Private health offers cover that medicare doesn’t like chiros, dentists and therapists. If people do not have access to these services anymore, the workforce will become weaker – and thus the economy too.
Isn’t that what Labour should be focussing on? Ensuring a healty and strong future?
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Private health Companies should be advising their members the up to date situation and what the members should be doing.
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I agree with David Jones.The Coalition should be the target of your efforts especially given that they will be in power in 2013 and by thier lack of opposition to the legislation are not likely to reinststate the existing provisions of the rebate.Why would they?
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This is a bad Govt policy.Working hard should not earn a penalty, we need more people with health plans mnot less.
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The passing of this poorly-considered legislation is one thing … but ensuring the reinstatement of the status quo is quite something else.
The Bill has been on the floor of the House for over three years, and twice presented and defeated.
At no stage in the past three years have we heard the Opposition come out and clearly articulate that a coalition government would, immediately upon taking office, reinstate the existing provisions of 30%, non-means-tested.
This is where your efforts should be targeted.
16 February 2012
David,
I think Tony Abbott is listening to you.
http://www.tonyabbott.com.au/ContactTony.aspx
Peoples keep writing to your politicians, to :
reinstate the existing provision of 30%, non means-tested assistance
: abolish the carbon tax, before our country is so non competetive that more jobs go offshore!
The politicians are supposed to represent us.The current govt has not sought to inject extra funds into the public health system to offset those that are struggling now, and find with the reduction of rebate, that will, just have to giveup private health and join the ever drowning public health system.