"Australians will have a more expensive, less equitable health system with the sick bearing more of the economic brunt if Federal Treasurer Mr Peter Costello's plans are put into place" warned Dr Peter Davoren President of the Doctors Reform Society of Queensland today.

"Peter Costello wants people who can "afford it" to pay more for health care by taking out private health insurance.  Australian people however are increasingly showing that they want to pay through Medicare.  With Medicare and a progressive tax system without  loop holes for the rich, the wealthier do pay more.  Under a private health insurance scheme the poor pay as much as the rich and the sick pay more than the healthy.  Modifying community rating as Costello is suggesting will make the sick pay even more" said Dr Davoren.

"Australia already has one of the highest proportion of private to public health expenditure amongst OECD countries.  The expensive, inefficient USA system is an example of where the government wants to take us.  Australians don't want to go down the US path.  We want a good equitable system based on need and paid through a fair tax system" said Dr Davoren.

"We don't want a two-tiered system with ordinary people either struggling to pay insurance and out-of-pocket costs for expensive private health coverage or relying on a run down public "welfare" system.  Everyone would pay more in the long run.  Health should be a community responsibility and right not a commercial or welfare issue" said Dr Davoren.

"What is needed is more funding of Medicare and public hospitals and a fairer progressive tax system rather than propping up an expensive, inequitable private health system.  Costello and Howard should take note of what the Australian people are telling them and stop wasting Australian tax payers' money!" said Dr Davoren.

21/5/98

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