Tue 24th Feb 2009

“The proposed increase in the threshold for avoiding the Medicare Levy Surcharge may well mean a decline in private health insurance (PHI) cover,” said Dr Tim Woodruff, President, Doctors Reform Society. “This will mean less tax support for the private health insurance industry and perhaps less work for private specialists in private hospitals.”

“It’s no wonder then that the PHI industry and the Australian Medical Association are complaining,” said Dr Woodruff. “They both have a vested interest in taxpayer support for the private health system which has been helping to tear the heart out of the public health system for a decade.”

“Whilst more people may now say ‘PHI is not worth it’, that’s the PHI industry’s problem. If they can’t make it a worthwhile and affordable product, even with the Federal Government’s annual 3 billion dollar subsidy of PHI, and its neglect of the public system for the last decade, they should be on their own”

“Whilst the Government’s decision appears to be based on correcting the threshold because of inflation, it really should be asking why the rich can avoid paying the Medicare Levy Surcharge just because they are rich enough to afford PHI,” said Dr Woodruff.

“Indeed, one has to ask why the Federal Government’s support for PHI which was called ‘a monumental waste of money’ by the then Labor leader 10 years ago is any less wasteful now,” said Dr Woodruff. “It has failed to put downward pressure on premiums, and failed dismally to help correct the appalling waiting times for elective surgery in public hospitals. It is so unfair on working families and on the 56% of Australians who cannot afford PHI. It’s time to do more than fiddle with thresholds.”

Dr Tim Woodruff
President
Doctors Reform Society

Dr Con Costa
Vice President
Doctors Reform Society

Dr Tracy Schrader
Vice President Qld
Doctors Reform Society

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