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PBS vs PHI

The PBS budget has doubled since 1996. Something must be done. The Government's response: Patients will have to pay more.'

But the Private Health Insurance rebate has also doubled in cost since its inception only two years ago, from $1.2 billion to $2.35 billion. Something should be done. The Government's response two months ago was to agree that it should increase by another 7%. Greater increases are predicted for next year. It is uncapped and unsustainable. But the Government had no budget measures for this.

Why have they picked on the PBS? The PHI rebate is likely to quickly overtake the PBS as the fastest growing single item of health expenditure. The Government's claim that they are looking at sustainability is itself unstainable as they ignore the uncapped increases in the PHI rebate.

The real agenda: patients must pay more for health, and if they can't then the Government will grudgingly grant them an inadequate, underfunded, second rate safety net. Safety nets have holes. Many patients will fall through them.

Tim Woodruff, National President DRS
Published in The Age 18th May 2002

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