published letters

Published in The Age on Wednesday, May 16, 2007

The Opposition’s rejection of changes to the Private Health Insurance (PHI) rebate is a sad confirmation that neither of the major political parties accept that this $3 billion per year subsidy of the private health industry is both inequitable and inefficient. The rich are being asked by the Rudd Government to pay for the luxury of a short waiting time for surgery or for their private maternity services. How can Mr Turnbull object to that when over half of all Australians must wait for the underfunded public system for their care?

But whilst the Rudd Government has announced changes to the PHI rebate, it will do little more than save $500 million per year. It will not affect the growth of the private hospital sector which is dragging specialists out of the under-resourced public sector. Nor will these savings be earmarked to rebuild and properly finance the struggling public sector.

The 56% majority of Australians who can’t afford PHI will continue to be ignored by both major parties as both parties commit to private affluence and public squalor. Who cares about those who can’t afford private health insurance?

Dr Tim Woodruff
President
Doctors Reform Society