Doctors Reform Society

MEDIA RELEASE

7 March  2003

Mr Howard to take back your Medicare card.

"Proposed changes to Medicare Bulk Billing flags the introduction of a US style health system" said Dr Tim Woodruff, National President of the Doctors Reform Society. If the changes go ahead it will be the end of Medicare as we know it".

"Signs are that there  will be a very hefty payment for patients to see the doctor - which may be covered by private insurance (PHI) for those that can afford PHI" said Dr Woodruff.

"The less well off or those without private health insurance will have to pay heft payments out of pocket. This will create the US style "us and them" health system where many Australians will find health unaffordable".

This is not "Medicare stays" as promised by Mr Howard. It is very similar to a proposed plan put forward by Mr Howard's  Liberal party before the 1993 elections - which they lost.

In the United States it now costs hundreds of dollars to see a GP - and most cannot afford it and usually skip the GP and go straight to the specialist  in order to try and save money. This means an even greater explosion in health costs. On top of that routine medications in the US can cost $500 to $1000 per month for a typical patient with diabetes for example

The other worry going on the PM's logic that " the rich should not see the GP for free" argument is that we will soon see means testing of our public hospitals.

Under Howard proposed changes to Medicare, healthcare will become very expensive for the patient and much less efficient in terms of costs. Medicare Bulk Billing costs 3% in administration charges, where the cost is around 13% in administration for a private system i.e. Medicare is much more efficient administratively. The Private Health Insurance companies will have to advertise, screen claims etc. All of this has been unnecessary with Medicare where everyone is covered.

Mr Howard is breaking a core election promise when he said "Medicare stays". He is dismantling Medicare in order to pay for a war that most Australians don't want and a Private Health Insurance rebate ($2.5 billion annually), which is not working.

" Mr Howard is promising a Medicare "Safety Net"  for pensioners and the poor costing $250 million annually while he continues to pour $2.5 billion annually into the pockets of the private insurance companies", said Dr Woodruff.

        Dr T Woodruff                                                                    Dr C Costa

        National President                                                             National Vice President

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