Sustainability Is Not the Reason

`The PBS budget has doubled since 1996. Something must be done', said Dr Tim Woodruff, President of the Doctors Reform Society. `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?' asked Dr Woodruff. `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.'

16 May, 2002

Dr Tim Woodruff
President, Doctors Reform Society

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