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Federal health minister ?not allowed? to lift rebate freeze

by Staff Writer
October 11, 2019
in News
Reading Time: 4 mins read
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Ms Ley was responding to campaigns by the Royal Australian College of General Practitioners (RACGP) and the Australian Medical Association (AMA) and, to a lesser extent, a campaign by Optometry Australia (OA).The Federal Opposition has pledged to lift the freeze from next January if elected, which is expected to cost $2.4 billion over the first four years, making it the most expensive spending commitment of the election campaign yet.Doctors said they understood the freeze would be lifted rather than extended in this year’s budget.The RACGP and the AMA both launched public campaigns against the extended freeze, warning that instead of bulk billing patients, more doctors would be forced to charge a co-payment.OA wrote to Ms Ley detailing its objection to the extension of the freeze and highlighting potential effects on patient access to eye care as well as to the major political parties in the lead-up to the upcoming Federal Election. OA indicated it would share the responses with mbers.Mbers were encouraged to write to their Federal MP and other candidates in the lead-up to the election, seeking reinstatent of indexation of the Medicare rebates.Ms Ley, who previously criticised medical practitioners for not offering to “assist taxpayers” while reforms to primary healthcare were underway, said on 23 May, “I understand for doctors that the GP freeze has been difficult and I appreciate they’re working with us.“I’ve said to doctors I want that freeze lifted as soon as possible but I appreciate that Finance and Treasury aren’t allowing me to do it just yet.”Ms Ley would not say whether the extended freeze would cause bulk-billing rates – currently at record highs – to fall, but was sceptical that doctors might charge $20 per consultation to make up what she said was a $0.60 loss.The Labor Government froze indexation for eight months in 2013, lifting it for GPs in 2014–15. The Liberal-National Coalition Government reintroduced the freeze, extending it for four years in 2014 before this month pushing it out a further two years to 2020 to save $925.3 million.Opposition responseThe Opposition capitalised on Ms Ley’s rarks, with leader Mr Bill Shorten saying they showed the Coalition was divided on health and that the minister had “been rolled by other people in the government”.Prime Minister Mr Malcolm Turnbull said the freeze would end “at some point”.“[It] will end when we judge it is affordable within the context of the health budget,” he stated. “That’s all Sussan is saying. It’s common sense.”Mr Turnbull said savings from the freeze on Medicare rebates had allowed the government to subsidise more “life-saving drugs” for Australians. Budget papers indicated that the savings from the extended freeze would be “redirected … to fund health policy priorities”.{{image3-a:r-w:300}}Shadow health spokeswoman Ms Catherine King said Ms Ley had indicated the lack of influence she had in cabinet on health policy. “She has basically admitted that health policy under the Turnbull Government is all about cuts and about finding savings, it has got nothing to do with the health of this nation.”AMA president Professor Brian Owler said the effects of the latest freeze were yet to be felt but that the two-year extension had sent “a signal [that doctors] can’t absorb the freeze over that period”.Prof Owler estimated that doctors who abandoned bulk billing would, as a result, charge patients a co-payment of between $15 and $20.“[While the $0.60 lost in indexation] doesn’t sound like a lot … if you’re seeing thousands of patients a year, it adds up,” he said. “For a GP seeing 30 patients a day, it’s a lot of money out of the practice and the indexation compounds [over time].”Those who stop bulk billing to charge co-payments will also lose $10 in bulk-billing incentives for each consultation.The prime minister and the health minister have differed on the issue of the Coalition’s plan for the cost of prescription medicines.The Opposition has promised to officially scrap the failed plan for a one-off rise to Pharmaceutical Benefits Sche (PBS) co-payments and not to increase th beyond inflation, which is expected to cost $3.6 billion over a decade. The Coalition shelved the rise after it failed to garner Senate support but it was still included in budget papers.Mr Turnbull re-committed to the rise on 22 May, while Ms Ley was less enthusiastic, saying they would re-consider the matter after the election.Pressed on the policy on 23 May, Ms Ley told the ABC it was still “on the table” provided it could be passed.“I’m supportive of a sustainable PBS and I think it was a very sensible measure in that direction but when we have a new Senate we will talk with th about how they might pass this measure,” she said.

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