The Doctors Reform Society today condemned the proposal by Medibank Private to increase its premium by 13%.

"Because the Howard Government is committed to maintaining the private health insurance rebate, any increase in private health insurance premiums means even more tax-payers' money going to the private sector" said Dr Con Costa, vice president of the Doctors Reform Society.

"As doctors, we know that the main effect of the rebate has been nothing but a massive transfer of funds from the public purse to the private sector. The rebate has not reduced waiting lists or the pressure on public hospitals as promised. It has merely increased demand for elective surgery in private hospitals" said Dr Costa.

" The Federal Government is wasting over $2 billion per year in subsidies to the private health insurance industry while our public hospitals, nursing homes and public dental scheme are being starved of funds and the nursing industry is under great strain. We call on Mr Howard to put an end to this shameful waste of tax-payers money and direct it towards public facilities as any responsible government should" said Dr Costa.

4 February, 2002

CONTACT:
Dr Con Costa
Vice President, Doctors Reform Society

Dr Peter Davoren
Vice President, Doctors Reform Society

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