The Prime Minister Mr Howard, today stated that the private health insurance rebate has cost taxpayers at least $500 million more than budget estimates and that this money would be obtained from extra money raised from petrol taxes.

" There is no evidence that the extra people who have taken out private health insurance has reduced hospital waiting lists or improved health care in any significant way" said Dr Peter Davoren, President of the Doctors Reform Society.

" The only effect of the private health insurance rebate has been to subsidise the inefficient private health funds and blow out the government budget expenditure" said Dr Davoren.

" If the Government wanted to really help public hospitals, they should redirect this subsidy to public hospitals and Medicare. If they don't then the result will be longer waiting lists in public hospitals and the death of Medicare" said Dr Davoren.

17 October, 2000

CONTACT:

Dr Peter Davoren,
National President of the Doctors Reform Society

Dr Con Costa,
President, Doctors Reform Society of NSW

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