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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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