1. health and fitness

MEDIA RELEASE
Friday December 19th, 2014
SUMMARY: Millions of Australians, a significant number of them chronically ill, will for the
first time pay out of their own pocket to see the doctor, national health organisations have
warned.
The Government’s proposed cuts to Medicare would result in many patients having to pay $5
and more, and place long term strain on medical practices throughout Australia.
The Consumers Health Forum and the Public Health Association of Australia today (Friday 19
December) have issued a joint warning, urging the Government to rethink the radical hits on
Medicare.
Adam Stankevicius of the CHF says the changes are a backdoor tax via GPs. He says many
ordinary Australians will be hit hard - the AMA has publicly suggested patients may be paying
up to $10 more than the currently-proposed $5 co-payments to see a GP.
“This will accelerate the emerging two-tiered health system in Australia, spurred by the
Government’s planned $50 billion cuts to public hospitals and its favoured expansion of private
health cover which will leave public patients with second class access compared to insured
patients.
Professor Heather Yeatman, the President of the Public Health Association of Australia, said
GPs “are being forced to do the dirty work of the government….Either they lose $3billion from
their own pockets over the next three and a half years or drag it from the wallets of the bulk of
their patients.
The CHF and PHAA supported the Government’s decision to continue to fund bulk billing for
pensioners, children and other vulnerable groups.
“But on the basis of the Government’s own figures --- that 70 per cent of GP services to nonconcession patients are currently bulk-billed --- more than 30 million GP consultations a year
will be hit by the $5 cut in the Medicare rebate,” Mr Stankevicius said.
“The Government says bulk billing GPs will have the “option” of passing on the $5 Medicare
rebate cut to patients. But bulk billing GPs are already on tight budgets and will have no choice
but to require patients to bear the cost.
More than 7 million Australians have a chronic condition and many would need to see a GP
regularly. “It is inevitable many thousands of these people would not qualify for concessions and
would be forced to delay critical visits because of the new fees.”
Consumers Health Forum of Australia
T: 02 6273 5444
www.chf.org.au
ABN 82 146 988 927
Australia already has some of the world's highest out of pocket health costs (we pay double the
amount the British or French pay). About $25 billion, or 17 per cent of the nation's entire health
costs come directly from consumers’ pockets.
STORY IN FULL: Hundreds of thousands of chronically ill Australians will be paying straight out of
their own pockets for the first time to see a doctor as a direct result of the Government's proposed
new radical changes to Medicare benefits , the Consumers Health Forum of Australia (CHF) and the
Public Health Association of Australia (PHAA) warn.
The CHF says official statistics show at least 7 million people in Australia now have at least 1 chronic
condition. This includes people with coronary heart disease, stroke, diabetes, colorectal cancer,
depression, arthritis, osteoporosis and more. These people have to see a doctor for their condition
and many will now have to pay out of pocket fees on a regular basis.
The CHF says people who are chronically ill, young families and elderly people not covered by
concessions, will be hit very hard.
The Consumers Health Forum of Australia is an independent not-for-profit organisation whose
member organisations represent two million health consumers around Australia. CHF CEO Adam
Stankevicius says the net result of the changes will be that many people will end up avoiding seeing a
doctor and will get sicker as a result - because of the financial pressures they are under.
The Public Health Association of Australia is a national organisation comprising 1900 individual
members and representing over 40 professional groups concerned with the promotion of health at a
population level. PHAA is recognised as the principal non-government organisation for public health in
Australia and works to promote the health and well-being of all Australians.
Professor Heather Yeatman, the President of the PHAA, said: “Our GPs are being forced to do the
dirty work of the government. Either they lose $3billion from their own pockets over the next three
and a half years or drag it from the wallets of the bulk of their patients. This is simply unacceptable.
The message has been clear. The criticism widespread. A universal health care system is one that
provides appropriate access to the community without distinguishing on the grounds of ability to pay”.
PHAA CEO, Michael Moore added, “This is a cynical manipulation punishing those who provide care
in our community.
Apart from the $5 slug, other changes proposed are also likely to push up the gap fees charged by
GPs. A three-and-a-half year freeze on Medicare payments to doctors will mean patients face higher
out of pocket costs as doctors raise their fees to meet costs.
As well there are changes to the time-based Medicare payments for GPs which mean patients may
face higher charges for short consultations of less than 10 minutes.
The AMA has warned that non-concession patients who have until now been bulk billed, could face
an upfront fee of $42 and would then have to claim the $32 rebate back from Medicare.
.A leading health system expert, Professor Stephen Duckett, has said the combined impact of the
changes could see patients paying a $25 co-payment.
The squeeze on the GPs comes against a background of the Government’s $50 billion cuts to public
hospital spending planned for the future which are likely to accentuate a “two-tier” health system in
Australia where those dependent on public services get second class access compared to privatelyinsured patients.
The CHF says Australia already has some of the highest out of pocket healthcare costs in the world Australians pay double the amount of out of pocket health costs than people in the UK or
Consumers Health Forum of Australia
T: 02 6273 5444
www.chf.org.au
ABN 82 146 988 927
France. Individual consumers pay about $25 billion out of their own pockets for health costs in
Australia.
Government spending on health as a percentage of GDP, 9 per cent, is low compared to other
Western nations. Recent figures show that in 2012-13 there was a drop in Federal Government
expenditure of 2.4%, compared to an average growth of 4.4% over the previous decade.
Adam Stankevicius said, "Let's call this what it is. It is - quite simply - a backdoor tax via
GPs. Doctors are either going to be forced to take a pay cut or charge their patients more. Clearly
for the working poor and many ordinary Australians, these changes are massive and will be
absolutely devastating."
"It is extremely disturbing to see the Australian Medical Association publicly indicating that because of
extra red tape and costs of administering the new fees, GPs may have to charge $10.”
The Consumers Health Forum says the cuts to Medicare benefits will turn the clock back on
Medicare. There are many areas of Australia where more than 90 per cent of patients need and use
bulk billing services. He says the effects of the changes will be huge on these communities.
"We urge everyone affected to demand these changes be withdrawn or defeated in the
Senate. Make no mistake, this is a co-payment by default. There is nothing fair about it."
The Consumers Health Forum says the move will generate higher health costs because sicker
patients will then end up needing expensive hospital care.
A report last month by the BEACH general practice evaluation project showed that general practice
delivered good value for money. GPs are treating an increasing number of patients with complex and
chronic conditions at reasonable cost to health system.
While the Government makes much of the rise in Medicare costs over the past decade, the facts are
that Australia’s overall economy grew at a similar rate in that period. As well, the numbers of the age
group who tend to be high users of health care, those aged 65 years and over, increased by 27 per
cent in that time.
The CHF and PHAA say many other options need to be reviewed, including primary health care. The
Government is slugging GPs yet their primary healthcare services reduce the need for costly
hospitalisations. Other options for savings would include reviewing Medicare funding of expensive
but low value procedures and reducing the cost of the Pharmaceutical Benefits Scheme by exploiting
the reduced global prices for generic medicines.
ENDS
Media inquiries:
Adam Stankevicius: 0477 770 180
Heather Yeatman: 0409 849 679
Mark Metherell: 0429 111 986
Consumers Health Forum of Australia
T: 02 6273 5444
www.chf.org.au
ABN 82 146 988 927