Media Releases

“The 6% rise in Private Health Insurance (PHI) premiums announced yesterday is a further $200 million per year hit on taxpayers, especially those 56% of Australians who will never receive any benefits because they can’t afford PHI,” said Dr Tim Woodruff, President, Doctors Reform Society.

“This is on top of the current $3.8 billion per year gifted to the PHI industry through the rebate,” said Dr Woodruff. “Even Treasury has told Cabinet last year that this is an inefficient use of funds but the Government persists in pursuing this unfair, discriminatory, and inefficient spending of taxpayers’ dollars”

“Means testing the rebate will only make this slightly less unfair and is no threat to PHI uptake,” said Dr Woodruff. “The biggest threat to PHI uptake would be for the Federal Government to properly fund the public hospitals so that people aren’t forced through fear to take out PHI they don’t really want.”

“It is disappointing that neither of the major political parties is putting the interests of the most needy patients ahead of vested financial and political interests,” said Dr Woodruff. “It’s time to use taxes for the public system which everyone can access and to stop kicking the majority of Australians in the guts by spending even more of their taxes to fund inequitable and inefficient policies.”

Dr Tim Woodruff
President
Doctors Reform Society

Dr Con Costa
Vice President
Doctors Reform Society

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“The health of patients with cataracts is being forgotten by all major parties in the debate about Medicare rebates for cataract surgery,” said Dr Tim Woodruff, President, Doctors Reform Society.

“The Federal Government’s main interest appears to be to save money even though it knows that some eye surgeons will not reduce their fees, thus leaving patients to pay more or simply not have the vision saving operation,” said Dr Woodruff

“The eye surgeons are clearly putting interest in defending their own income in front of providing affordable access to patients for an operation they know can transform their patients’ lives. And now the Federal Opposition is playing politics with the issue in a way which may lead to patients getting no Medicare rebate at all.”

“But all three players continue to ignore the basic problem which leads to this unhealthy debacle,” said Dr Woodruff. “The weakened public hospital system upon which the majority of Australians depend for their cataract surgery, cannot possibly compete with a private industry which is so heavily taxpayer funded but which is only accessible to those who can afford it. Many elderly are desperate enough to have private health cover because they don’t want to be queuing at the public hospitals to get their lives back by having their vision restored.”

“It is this taxpayer funding of the private system which sets the scene for private specialists to charge almost what they like, knowing that there are enough patients who are desperate enough to pay extra to avoid public hospital queues.”

“Rather than ignoring patients and attempting to control a fundamentally flawed private industry, the Federal Government must adequately fund the public system so that it can compete for patients and doctors against the taxpayer funded private industry. It also needs to address the ‘closed shop’ training of specialists to ensure there are sufficient specialists for our patients.

Dr Tim Woodruff
President
Doctors Reform Society

Dr Con Costa
Vice President
Doctors Reform Society

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“It’s time the Federal Government recognised that the well intentioned funding of access to psychologists for those with mental health conditions is missing the most needy because it is a flawed program,” said Dr Tim Woodruff, president, Doctors Reform Society.

 “Average costs of copayments of $35 ensure that the inverse care law applies ie that the most needy get the least care and the least needy get the most care,” said Dr Woodruff. “Private fee for service funding ensures that patients who live in areas of workforce shortage continue to miss out because there are not enough GPs or psychologists to provide the service.”

 “The budget blowout to twice what was expected is an indication of the need for the services but the money is being spent inefficiently and inequitably”, said Dr Woodruff. “It’s time the Federal Government recognised that it is a flawed funding model. They should incorporate funding for psychologists into a needs based regional funding model which aims to get the money spent on those with the greatest need, not the most healthy credit card.”

Dr Tim Woodruff    Dr Con Costa   

President   Vice President      

Doctors Reform Society                           

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“Despite long term federal Government underfunding of public hospitals, the Private Health Insurance industry is asking for another huge taxpayer subsidy when it asks for a $200 per year increase in premiums,” said Dr Tim Woodruff, President, Doctors Reform Society.

“Almost one third of the $200, or around $60 is funded by the taxpayer”, said Dr Woodruff. “Also twenty four dollars will go into administration costs to support the grossly inefficient industry, and the rest is available to subsidise those Australians who are lucky enough to be able to afford private health insurance – mainly the middle class and the wealthy… The 56% of Australians who can’t afford private insurance will stay wholly dependent on an underfunded and struggling public hospital system – which the incoming federal Government claimed it was going to fix – while all Australians will remain almost wholly dependant on the struggling public system for serious illness and non elective surgery type care.”

“The Productivity Commission has concluded it can’t come to a conclusion on whether private or public hospitals are better because the Government has not forced hospitals to collect and release the data needed but the evidence from North America is that private for profit hospitals have higher death rates than public hospitals.”

“So in Australia we have a Federal Government using taxes to fund richer Australians to queue jump the public hospital waiting lists and enter private hospitals which may be more dangerous than the public ones they’ve avoided.”

“It’s time the Government was honest with the Australian people,” said Dr Woodruff. “It should immediately begin the gradual removal of the dangerous, inefficient and inequitable taxpayer support for the private health insurance industry. Its time to stop the PHI rebate charade and get back to putting our taxes into our hospitals and health care – not into the pockets of private business and individuals.”

Dr Tim Woodruff
President
Doctors Reform Society

Dr Con Costa
Vice President
Doctors Reform Society

]]

“The Opposition’s rejection of changes to the Private Health Insurance (PHI) rebate is a sad confirmation that neither of the major political parties accept that this $3 billion per year subsidy of the private health industry is both inequitable and inefficient,” said Dr Tim Woodruff, President, Doctors Reform Society

“The rich are being asked by the Rudd Government to pay for the luxury of a short waiting time for surgery or for their private maternity services,” said Dr Woodruff. “How can Mr Turnbull object to that when over half of all Australians must wait for the underfunded public system for their care?”

“But whilst the Rudd Government has announced changes to the PHI rebate, it will do little more than save $500 million per year,” said Dr Woodruff. “It will not affect the growth of the private hospital sector which is dragging specialists out of the under-resourced public sector. Nor will these savings be earmarked to rebuild and properly finance the struggling public sector.”

“So the majority of Australians, the 56% of Australians who can’t afford PHI, will continue to be ignored by both major parties as both parties commit to private affluence and public squalor.”

“As for raising revenue from increasing tax on cigarettes by 3 cents; if it reduces smoking it won’t raise revenue, if it doesn’t then it’s simply a tax on people with an addiction; hardly a health measure.”

Dr Tim Woodruff
President
Doctors Reform Society

Dr Con Costa
Vice President
Doctors Reform Society

]]

“Instead of announcing bold new funding initiatives to meet the historical federal commitment to 50% funding of the public hospitals – (federal share of funding has been lagging dramatically since the times of the Howard government and their push for hospital privatisation) – the Rudd Government has simply frittered around at the edges of the wasteful PHI rebate,” said Dr Tim Woodruff, President, Doctors Reform Society. Even then, any meagre savings from some minor reductions to the PHI rebate ($500 million out of the wasteful $3 billion annually) will not be going to the cash strapped public hospitals.”

“Addressing the worst inequities of the Private Health Insurance (PHI) rebate and the Medicare Safety Net are welcome,” said Dr Woodruff, “but the PHI rebate was a waste of money in the good times. It is now simply obscene.”

Our public hospitals have always carried the burden for major illness and injury for ALL Australians – regardless of ability to pay. How many of our sick children are treated in private hospitals?? Yet this government seems determined to hang them out to dry while continuing privatisation via public subsidies to the failed private health insurance industry.

“Where is the immediate investment in the desperate public hospital and health system to guard against the increased demand for public services which are likely as we move further into recession and un and under-employment deepens?,” asked Dr Woodruff. .”Much of the ‘new’ money for hospitals had been promised already, and most will not be available for several years despite it being obvious that it’s needed now to address the 2 year waits for elective services and the days long wait in emergency departments which our public patients endure.”

“Money has quite rightly been found for pensioners, but many pensioners will find copayments and private hospital charges will quickly eliminate these benefits as they struggle to choose between an under-resourced public health system and the expensive expanding publicly subsidised private health industry.”

Dr Tim Woodruff
President
Doctors Reform Society

Dr Con Costa
Vice President
Doctors Reform Society

]]

“The DRS supports the National Health and Hospitals Reform Commission’s criticism of the current method of payment of GPs,” said Dr Tim Woodruff, President, Doctors Reform Society. “Paying doctors on a walk in walk out basis is only useful for a minority of illness in primary care. It discourages professionalism, encourages doctors to work alone rather than with health teams, and in a perfunctory manner i.e. time is money and an emphasis on quick consultations and fast throughput,” said Dr Woodruff.

“Fee for service (FFS) is not a good way to pay for the doctor to manage chronic illness or community care such as house visits and taking care of the elderly, seriously ill, those with disability or mental illness or those needing home care, palliative care etc.”

“In addition, FFS means patients who live in areas of workforce shortage, who are usually the most needy, get less care than those who live in richer urban areas, because funding goes to doctors, not to areas of need”

“We support calls for a mixed payment system for GPs that could combine FFS for acute care and part salary and part incentive payments for meeting broad targets and voluntary enrolments etc. It is crucial however, that incentive payments have no negative effects such as disadvantaging doctors working in areas of increased health burden, or encouraging doctors to cherry pick patiens with certain diseases.”

“However, we would stress that the important aim should be to get away from wholesale dependence on FFS payments,” said Dr Woodruff. “This would encourage doctors’ professionalism and a team approach to primary care, but it also must be done in a way which does not lead to frustratingly complicated and regulated payment systems.”

“But while reform of the system itself is important, it must be recognised that reform costs money but it is an investment in the future and in the midst of our current economic crisis it is crucial to make that investment,” said Dr Woodruff. “The current health system is under funded and under strain. Prime Minister Rudd’s promise to fund the system properly if elected should be implemented immediately and even while reform is being discussed. Otherwise doctors and patients may not take the reform process seriously or get the wrong idea – that the federal government’s reform process is really about privatising the health system or introducing US style managed care. And this would be the wrong signal to be giving at this time”. said Dr Woodruff.

Dr Tim Woodruff
President
Doctors Reform Society

Dr Con Costa
Vice President
Doctors Reform Society

]]

Reports today that Treasury has repeatedly told the Rudd Government that the Private Health Insurance (PHI) rebate is inefficient is hardly surprising news, said Dr Tim Woodruff, President, Doctors Reform Society.

It’s very obvious to us as doctors and to patients and relatives across the country that the private/ public divide is inequitable, said Dr Woodruff. Public patients wait years on crutches or in wheelchairs for their hip replacements whilst private patients are treated within weeks. The PHI rebate encourages queue jumping of public waiting lists by those who, with taxpayer support, can afford PHI. The rebate has also funded the growth of the private sector, taking doctors out of the short staffed public sector.

The Government’s National Health and Hospitals Reform Commission claims principles of efficiency and equity. They didn’t address the PHI rebate.

We call on the Prime Minister to fulfil his promises of a root and branch analysis of the health system and evidence based policy and include the PHI rebate in the current review of the health system, said Dr Woodruff. Without such inclusion the review is badly flawed from the beginning.

Dr Tim Woodruff
President
Doctors Reform Society

Dr Con Costa
Vice President
Doctors Reform Society

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