Medicare changes a major threat to public hospitals
May 12, 2008
Proposed changes to the Medicare levy and surcharge could devastate
WA's already over burdened public hospital system, the AMA (WA)
warned today.
"Unless the Federal Government is ready to provide extra funding
to support WA's hospitals they will be under siege if thousands
of patients opt out of the private health system to be treated
under the public system," said association President Prof Geoff
Dobb.
"The knock on effect will cause elective surgery wait lists to
blow out and private health cover premiums to go through the roof,
making them less affordable for patients.
"The decision to attack private health insurance has been done
without any consultation with the medical profession, or it appears
private health insurers or private hospitals and is poorly conceived
and self defeating.
"It shows arrogant disregard for the existing pressure on public
hospitals, the contribution of private hospitals and makes a mockery
of co-operative Federalism and the reform process.
"The changes will be unlikely to save the Federal Government a
bucket load of money on the existing rebate, which appears to be
the only reason for doing it.
"If the changes go ahead the Commonwealth will need to compensate
the states for meeting the extra demand by increasing their grants
beyond the extra $1 billion already promised, plus contributing
capital to increase hospital capacity in the short term."
Prof Dobb said the plan to double the income threshold at which
the Medicare surcharge applied – from $50,000 to $100,000 for singles
and from $100,000 to $150,000 for families – would encourage healthy
young people to forgo private health insurance.
"People should think carefully before dropping their private health
insurance and with it their accrued benefits and entitlements they
have from being a fund member," he said.
"They also lose the ability to get elective surgery done when
convenient for work and family, rather than being at the whim of
the public hospital system."
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