"Yesterday's Federal Cabinet decision to approve Private Health Insurance (PHI) premium rises of an average 7% is a continuing example of the Federal Government's capacity to waste money. They can do better," said Dr Woodruff, National President of the Doctors Reform Society

"The premium hike is twice the consumer price index. The PHI rebate means this premium increase is also another $154 million in taxes which will not be available to spend on public hospitals, nursing homes, and generally better health care for all Australians." said Dr Woodruff.

"Why can't we spend our taxes on the health system which helps all Australians?" asked Dr Woodruff. "We need a review of the PHI rebate. The $2.3 billion could be spent on public hospitals, nursing homes, dental health, nurses, better preventative health and a host of other areas which would help to improve the health of all Australians.

"The 2.5 million Australians who were bribed and scared into private health insurance may need to reconsider the value of private health" said Dr Woodruff. "Each year their premiums will rise. Perhaps they need to ask the Government to look at spending the ever increasing $2.3 billion tax rebate on the public sector instead of wasting increasing amounts every year maintaining or increasing the profits of the private health insurance industry."

26 February, 2002

CONTACT:
Dr Tim Woodruff
President, Doctors Reform Society

Dr Con Costa
Vice President, Doctors Reform Society

Dr Peter Davoren
Vice President, Doctors Reform Society

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