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Tag Archives: co-payments

Medi-wedon’t-care

In February this year, while refusing to confirm his government was considering introducing GP co-payments, Tony Abbott said, “As a health minister in a former government, I used to say that government was the best friend Medicare has ever had. This leopard doesn’t change his spots and I want this government, likewise, to be the best friend Medicare has ever had.”

History tells us that this leopard does in fact change his spots when it becomes politically expedient to do so and that the Coalition were dragged kicking and screaming to Medicare.

Originally, the scheme was called Medibank and was a major plank in Whitlam’s 1972 election platform. The coalition Liberal and National parties opposed Medibank. The legislation to implement it was twice rejected by the Senate. Following the 1974 double dissolution election, the legislation was again rejected by the Senate but passed at an historic joint sitting of the parliament. Medibank came into operation on July 1, 1975.

The Fraser Coalition government neutered Medibank, with taxpayers able to opt out of paying an increased levy in favour of private insurance.

The Hawke government reintroduced Medibank, rebadging it as Medicare. Financing arrangements were modified but the scheme was effectively the same as the one introduced by Whitlam. Throughout the 1980s, Medicare continued to be criticised by the Coalition. Whilst the 1993 election is remembered as a referendum on John Hewson’s GST, changes to Medicare were also an issue. For many years, bulk billing seemed to be at risk from a change of government. The 1993 election effectively led to bipartisan support for Medicare.

After Howard was elected, membership of private health funds fell to just over 30% in December 1998. With a mixture of financial carrots and sticks, private insurance peaked at 46% in December 2000 – and has remained at around this level ever since. This also generated a largely new for-profit private hospital industry.

By late 2003, bulk billing had fallen to 66%, from its peak of 80% under Paul Keating’s Labor government (1991 to 1996). These rising out-of-pocket costs for visiting a GP fuelled discontent with the government. Tony Abbott was appointed Health Minister and, to address this problem, promptly increased rebates to GPs. This quickly changed the trend. By 2004, bulk billing rates were back over 70% and Abbott declared the government was now “Medicare’s greatest friend”.

True to his highly political approach to the portfolio, the reforms Abbott can claim were driven by election timing.

Colorectal (bowel) cancer screening had a substantial amount of research and successful pilot schemes behind it. It was added to the Coalition’s 2004 election promises, partly to meet the attractions of Labor’s Medicare Gold – which promised to end waiting lists for over-75s. At the same time, the government subsidy to cover private health insurance premiums was increased for members over 65 and even higher for those over 70.

Out-of-pocket costs were also hitting consumers who used specialist services – again through charges well above the rebate offered by Medicare. The Medicare Safety Net – which gave an additional subsidy if costs of specialist in-hospital services passed a threshold – was intended to fix this problem. With no control over specialists’ fee-setting, this proved a recipe for further fee inflation and much of the benefit went to those who were better off. The 20% of Australians living in the wealthiest areas received 55% of Safety Net benefits, whereas those 20% living in poorest areas received less than 4% of benefits, largely due to wealthy people being more likely to see specialists.

The Safety Net reduced the competitive pressures that some doctors faced and increased their ability to charge higher fees, particularly in specialty areas such as private obstetrics and assisted-reproductive technology services. For every dollar the government spent on the Safety Net, around 43 cents went towards increased doctor fees and 57 cents went towards reducing patients’ out-of-pocket costs.

During the 2004 election, Tony Abbott used a Four Corners interview to give his “absolutely rock-solid, ironclad commitment” that the Government would not, after the election, lift the thresholds for the Medicare rebates.

TICKY FULLERTON: Will this Government commit to keeping the Medicare-plus-safety-net as it is now in place after the election?

TONY ABBOTT: Yes.

TICKY FULLERTON: That’s a cast-iron commitment?

TONY ABBOTT: Cast-iron commitment. Absolutely.

TICKY FULLERTON: 80 per cent of out-of-pocket expenses rebatable over $300, over $700?

TONY ABBOTT: That is an absolutely rock solid, iron-clad commitment.

However, in 2005, Tony Abbott and the Howard Government raised the Medicare Safety Net threshold from $300 to $500 for lower income families, and $700 to $1000 for everybody else.

When speaking to Laurie Oakes, Abbott said the Government was being responsible because it was changing opinions when circumstances changed.

TONY ABBOTT: Laurie, again, I can understand your dwelling on this. But, but sometimes governments have to choose between a range of unpalatable alternatives. Now…

LAURIE OAKES: One of the unpalatable alternatives is telling the truth, presumably.

TONY ABBOTT: We set up this safety net back in March of last year. Thinking that it was going to cost $440 million.

LAURIE OAKES: You knew by the election it was $1.3 billion.

TONY ABBOTT: We, we discovered in September-October that it was going to cost a lot more. We made a decision in a budget context that the best thing we could do for the long-term health of the economy, and indeed for the long-term health of the Medicare system, to change the thresholds.

LAURIE OAKES: And con the people through the election.

Speaking to The Weekend Australian, Abbott confessed, “Plainly it’s good to honour the last syllable of the last pledge but it’s also good to honour the team. So I’ll be supporting the team.”

Tony made changes that drove up fees, gave doctors and wealthy people more, made promises he couldn’t keep in an election campaign, and then hit low income earners in the budget to pay for the cost blowout, justifying it with team solidarity – sound familiar?

Abbott is an interesting individual because he is one who can say “sorry” when required. In this case, he states, “I made a categoric statement that turned out not to be true”. But sorry to whom? The political team he plays for or the ordinary followers who support the team and performances he has led them to expect?

Tony Abbott, as Health Minister, was unsympathetic to the new public health push from the World Health Organization, aimed at the social determinants of health. He saw health as a matter of individual choice, and ill-health in medical terms around the prevention and cure of particular diseases.

In 2006, Abbott rejected a half-hearted push from Labor state health ministers for restrictions on junk food advertising to children as a move to the “nanny state”.

Apparently individual choice for women was a different matter when it came to the availability of the abortion pill, RU486. Abbott fought to keep ministerial discretion over the availability of such drugs – making the much-quoted observation he would have to be convinced that doctors were not presenting abortion as an “easy option” before prescribing a “backyard miscarriage”.

His veto powers were removed after a major revolt led by women parliamentarians from all parties.

Abbott ended his term of minister as he began – focused on politics rather than substantive policy. As Labor’s demands for a more national approach to hospital policy mounted, Abbott responded by upping the ante, declaring that:

the only big reform worth considering is giving one level of government – inevitably the federal government – responsibility for the entire health system.

He was quickly silenced on this by Howard, who had no intention of entering the mire of federal state relations and the management of hospital systems.

In the 2010 Budget, the Rudd government introduced Safety Net caps for a small number of Medicare services where there was evidence of high Safety Net expenditure and doctor fee increases. The caps placed limits on the amount a patient can claim under the Safety Net. Government expenditure on the Safety Net fell by a dramatic 42% that year.

Despite promising before the 2013 election not to cut money for health, the Coalition will dramatically shrink the Commonwealth’s share of hospital funding, cutting its annual contribution by $15 billion by 2024, with the deepest cuts beginning in 2017. In the meantime it will cut more than $200 million in reward payments for hospitals meeting federally-imposed performance targets for surgery and emergency treatment.

They have once again fiddled with the Safety Net. If you spend over the relevant threshold amount on out-of-pocket costs for eligible out-of-hospital services, Medicare will soon pay 80% of any subsequent out-of-pocket costs, but only up to an amount totalling 150% of the scheduled fee (not 300% as it is now under the Extended Medicare Safety net for many services). The spending threshold for relief under the Medicare safety net will be lowered, but the benefits payable will be capped, a change that is expected to produce more than $260 million in savings. This shifts more of the risk of excessively high fees onto individuals rather than the government.

Not only has the government slashed funding to hospitals and tried to send “price signals” to discourage people from seeing a GP or having tests, they have also attacked preventative health measures.

Terminating a partnership agreement with the states on preventive health will save $368 million, while $3 million will be cut from anti-smoking campaigns, and the National Preventive Health Agency will be abolished.

This is all the more galling when we read that more than half a million dollars is being splurged on focus groups to help spruik uncapping university fees.

If you visit the Liberal Party facebook page you will find several graphics designed to convince us that Medicare is unsustainable no doubt in an attempt to get us to agree to some iteration of the GP co-payment.

Mr Dutton said: “The Coalition is the greatest friend Medicare ever had, and with millions of Australians facing the challenges of obesity, diabetes and dementia into the next generation, our task now is to make sure we strengthen and improve our health system into the future.”

John Deeble, who in 1968 co-authored proposals that formed the basis of the Whitlam government’s Medibank and the Hawke government’s Medicare, dismissed as a “furphy” suggestions by Peter Dutton that Medicare risked becoming unaffordable.

“In a rich country, in an advanced society, anything is sustainable if the society says it is.”

He suggested raising the Medicare levy to 2.75 per cent to help meet growing health costs, saying such a change would raise more revenue every year than would be yielded once through the sale of Medibank Private.

Neal Blewett, who was health minister when Medicare was introduced, said the Abbott government would pay heavily if it undermined Medicare.

“The Liberals never managed to win an election in the 1980s and 1990s until they committed themselves to Medicare,” he said. “[They] need to remember that; that there’s a very strong commitment in the community to Medicare.”

Let’s remind them.

 

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Would you buy a used car from this man?

Photo: townsvillelabor.org

Photo: townsvillelabor.org

The budget has been handed down and the salesmen have hit the road peddling their plan. The only trouble is they don’t seem to know what they are selling.

Tony Abbott told Melbourne radio listeners an average person would only have to pay the $7 GP fee ten times and then they would be bulk billed.

In fact the government has put no limit on the number of times an ordinary worker will pay the $7 charge, however, there is a ten visit safety net just for pensioners and children.

The Australian Medical Association accused Treasurer Joe Hockey of also getting it wrong when he says the chronically ill won’t be hit by the $7 GP fee. AMA spokesman Dr Brian Morton said “He either doesn’t understand or is misusing the statistic or is lying.”

LNP backbencher Steve Ciobo also told ABC radio listeners ‘if they have a chronic disease they are exempt from making the co-payment”.

While it is true that Medicare’s chronic disease management item will be exempt from the $7 GP fee, this is only for one doctor’s visit a year where the GP plans the patient’s care for their chronic illnesses. All further visits, treatments and tests will attract the co-payment.

A spokeswoman for Mr Hockey said yesterday “his comments stand”.

When asked whether the government would be introducing new chronic disease treatment items exempt from the $7 charge she said “the legislation was still being drafted…I can’t give any detail”.

So even though the details haven’t been finalised, this woman is sure Hockey is right even though his own budget papers and the AMA say otherwise. These people don’t like criticism and truth is irrelevant. Look what happens when Andrew Robb tried to tell the truth after a previous budget reply – his staffer nearly had apoplexy trying to shut him up.

And then we have the debacle over the deregulation of uni fees.

Mr Abbott told ABC radio that only students who start studying in 2016 would face potentially higher fees when universities can charge what they like. But the budget papers clearly state that anyone who enrols after May 14 will face deregulated fees in 2016. Only those who were already studying on budget day would continue to have their fees capped – and only if they finish their studies by 2020.

Education Minister Christopher Pyne reiterated this in a separate ABC radio interview after Mr Abbott’s comments. A mother asked him whether her daughter, already at university, would have to pay more.

“If that student stays in the course that she’s doing, she’ll continue under the rules that she started. If she changes course, then quite rightly she will face the new measures.”

A spokesman for Mr Pyne said the prime minister “may not have been as clear as he could have been”.

National Union of Students president Deanna Taylor wasn’t surprised by the confusion at high levels.

“I don’t think the government really put a great deal of thought into their policy,” she told AAP, saying it appeared to be very ideologically driven. “They’re trying to make us sound like spoiled little brats who don’t know how good we’ve got it. They have a very clear agenda,” she said.

Christopher Pyne is still selling his cuts to education as an increase in funding. Alan Jones, while interviewing him on Wednesday, was astounded that despite the education minister’s “brilliant” advocacy skills the “blockheads” running state governments could not understand that the allegation of an $80bn cut was totally wrong. In fact, Jones said, “there hasn’t been a more monstrous lie perpetrated since Julia Gillard said there’d be no carbon tax”.

Pyne somehow neglected to refer Jones to page 7 of the government’s glossy budget overview which clearly states that the government is changing indexation of state grants and “removing funding guarantees for public hospitals. These measures will achieve cumulative savings of over $80bn by 20024-25.”

David Gonski made an impassioned plea last night for the government to reconsider education funding from 2017.

Even the IPA are sick of the lies saying the party which was elected promising to reduce the size of government and reduce taxes, will preside over large expenditure growth and is hiking, not axing, tax. The following is an excerpt from Chris Berg’s article about the budget.

“For all the fire and brimstone that accompanied last week’s commentary on the budget, the bottom line is simple: under the Coalition, government spending is going up, not down.

This is the long-term significance of Joe Hockey’s first budget.

A modest 1.7 per cent real reduction in expenditure next financial year will be more than offset by 0.4 per cent growth the year after, 2.1 per cent growth the year after that, and 2.6 per cent growth in the 2017-18 financial year (the end of the Treasury’s forward projections).

And tax? Well, while this year the government will collect $363 billion, by 2017-18 it plans to collect $467 billion. That’s a jump in the tax take from 23 per cent of GDP to 24.9 per cent.

The most controversial policies (like the “learn or earn” welfare changes, the increase in the pension age, and the university reforms) sound like classic austerity measures but in truth don’t alter the fiscal equation all that much. They’re social reforms being smuggled in under the cover of a budgetary crisis.

And most of the big spending cuts to health and education have been punted far into the future – beyond the next election, and many out past the Treasury’s forward estimates.

The budget is also full of policies that superficially look like aggressive cost reductions but are in fact new spending.

For instance, the $7 GP co-payment is, astonishingly, being poured into a huge new medical research fund. It will apparently be the biggest in the world.

This is a bizarre decision. The policy case for a co-payment is that introducing price signals will give patients a financial stake in their healthcare choices. But using that money to fund an entirely new government program makes the $7 charge look less like a co-payment and more like a research tax.

Likewise, the reindexation of the fuel excise isn’t to fix the budget emergency, but for new road projects. This is so Tony Abbott can live up to his self-applied “infrastructure prime minister” nickname.

Abbott said in August, 2013 that “the only party which is going to increase taxes after the election is the Labor Party”. It’s worrying the Coalition now pretends no such commitment was made.

In opposition Coalition spruikers said Abbott offered two things: the integrity Julia Gillard lacked, and the fiscal discipline Kevin Rudd lacked. After this budget, what’s left?

Abbott is no Gough Whitlam-of-the-right. He has no plan to redefine the relationship between state and citizen, despite his stirring oratory from opposition.

Nor, contrary to Joe Hockey’s assertions, has the age of entitlement come to an end. The paid parental leave scheme puts a lie to that little fantasy.

Governments think election to election. But Australia’s fiscal problem is measured in decades, not electoral cycles.”

It is hard to know whether the government just didn’t read their own document or whether they are deliberately trying to mislead us. A quick look at the Prime Minister’s page suggests the latter.

“Over six years, Labor ran up a $667 billion debt on the nation’s credit card. Every single month this debt is costing us a billion dollars just to cover the interest bill.”

His own budget papers show this to be a lie.

Total CGS on issue as at May 8 2014 $319 billion.

Net debt in 2014‑15 is estimated to be $226.4 billion.

Net interest expense in 2013-14 $10.952 billion

As an employer, I expect my staff to know what they are talking about and they are required to undergo ongoing education to keep up with current developments. If they tried to sell products they knew nothing about, or lied to customers to make a sale, they would be receiving their notice.

Tony, I am hereby providing you with notice. Should you choose to leave before your period of notice expires, the nation will be eternally grateful.

Trust me

In light of the deficit levy and the PPL levy and the increased Medicare levy to pay for the NDIS and the increased fuel excise and the co-payment for doctors and medications (aka sick tax), I thought it might be interesting to revisit Tony Abbott’s words.

Thanks to the ABC and Crikey. I have also added a few more to their lists.

August 22, 2011: “It is an absolute principle of democracy that governments should not and must not say one thing before an election and do the opposite afterwards. Nothing could be more calculated to bring our democracy into disrepute and alienate the citizenry of Australia from their government than if governments were to establish by precedent that they could say one thing before an election and do the opposite afterwards.

January 31,2013: “So my pledge to you is that I won’t say one thing before an election and do the opposite afterwards because fibbing your way into office is what’s brought our public life into disrepute.”

August 25, 2013: “We will be a no-surprises, no-excuses government, because you are sick of nasty surprises and lame excuses from people that you have trusted with your future.”

October 28, 2010: “We stand for lower, simpler, fairer taxes, not great big new taxes that damage Australia’s economy, not great big new taxes that are yet another hit on the cost of living of struggling Australian families.”

January 2011: “Why should the Australian people be hit with a levy to meet expenses which a competent, adult, prudent government should be able to cover from the ordinary revenues of government?”

February 10, 2011: “The one thing that [people] will never have to suffer under a Coalition government is an unnecessary new tax, a tax that could easily be replaced by savings found from the budget.”

February 23, 2011: “We honour the victims of the floods by being a competent parliament and a competent government. We do not honour them by imposing an unnecessary new tax.”

May 12 2011: “People can be confident that spending, debt and taxes will always be lower under a Coalition government because we have the record to prove it.”

August 15, 2011: “This is the week in which we will mark the first anniversary of the Prime Minister’s infamous promise to the Australian people before the last election: ‘There will be no carbon tax under the government I lead’. This is a promise that will haunt the Prime Minister and the Government every day until their ultimate political death. This Government fundamentally lacks legitimacy and not because it lacks a majority but because it lacks integrity and nothing more highlights the Government’s lack of integrity than this monumental broken promise.”

August 16, 2011: “A very clear message is going out from the Australian people to this government: there can be no tax collection without an election. If this government had any honesty, any decency, that is what we would have: an election now.”

August 16, 2011: “There is one fundamental message that we want to go out from this place to every nook and cranny of our country: There should be no new tax collection without an election.”

August 22, 2011: “I have often said, and members of this House will no doubt hear me say it again, there should be no new tax collection without an election,”

September 14, 2011: “I say to this Prime Minister: There should be no new tax collection without an election.”

November 23, 2011: “This government thinks that somehow you can build prosperity with new taxes. No country ever got rich by increasing taxation. No country ever built a strong economy by clobbering itself with tax after tax after tax.”

November 24, 2011: “Our objective can be stated quite simply and quite clearly. It is lower taxes, better services, more opportunities to work and, above all else, stronger borders.”

March 14, 2012: “What you’ll get under us are tax cuts without new taxes,”

May 10, 2012: People who work hard should not be “hit with higher taxes“.

September 19, 2012: “The time for big-spending, big-taxing, big-fibbing government has gone. We will give the Australian people the decent government they deserve.”

January 2013: “And when this government claims that its attacking middle class welfare, its just attacking the middle class because the family tax benefit and the private health insurance rebate are tax justice for families, not handouts.

May 16, 2013: “We want taxes that are lower, simpler and fairer and will take proposals for further tax reform to the following election,”

Real Solutions pamphlet, 2013: “We pledge to the families of Australia that we will never make your lives harder by imposing unnecessary new taxes.”

Liberal Election Policy 2013: “But only the Coalition can be trusted to actually deliver tax cuts and genuine tax reform that will boost the economy and ease cost‑of‑living pressures for Australian families

July 8, 2013: “The current government is addicted to regulation. They’ve never seen a problem that they didn’t think a new tax or a new regulation or another bureaucrat could solve.”

August 6, 2013: “Taxes will always be lower under a Coalition government.”

August 9, 2013: “The only party which is going to increase taxes after the election is the Labor Party.”

August 11, 2013: “The only party that will raise taxes after the election is the Labor Party.”

August 15, 2013: “I am determined not to increase the overall tax burden. I am absolutely determined not to increase the overall tax burden on anyone.”

August 15, 2013: “There will be no overall increase in the tax burden whatsoever.”

August 17, 2013: “Now I say the tax burden isn’t going to increase. Well, we are going to abolish the carbon tax, abolish the mining tax, we will reduce the company tax – of course the overall tax burden is going to go down.”

August 18, 2013: “I want to make it absolutely crystal clear that our objective when the fiscal circumstances are right, is to lower all taxes. We want to lower all taxes. We really are the party of lower, simpler, fairer taxes – look at our record in government.”

August 19, 2013: “We’ll build a stronger economy so that everyone can get ahead, and part of building a stronger economy is cutting unnecessary taxes, abolishing unnecessary taxes,”

September 2, 2013: In three years’ time, “because taxes will be lower and regulation reduced, economic growth should be stronger” if the Coalition was elected.

September 5, 2013: “Right now the best thing we can do for our country and ultimately the best thing we can do for people around the world is to strengthen our economy and that means cutting taxes, building the infrastructure of the future, because if tax is lower and infrastructure is better our economy will be more productive and a strong Australia is going to be a much better international citizen than an Australia which can’t really pay its way.”

September 5, 2013: “Economic policy will be geared towards stronger economic growth than it currently is. If you reduce taxes, if you reduce regulation, if you increase productivity, you will get stronger economic growth.”

 

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