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14 May 2013

2013-14 Federal Budget: Delayed freeze on MBS indexation slashes $664.4 million away from primary healthcare services

Tonight the Federal Treasurer, Wayne Swan, has announced a ‘one off’ freeze on MBS indexation until July 2014, a move that will slash $664.4 million out of primary healthcare services.

Dr Liz Marles, RACGP President, said the Medicare Benefits Scheme (MBS) – a scheme designed to ensure accessible, affordable healthcare for all Australians – has consistently failed to undergo proper indexing to match the consumer price index (CPI), and the further 8 month freezes will only compound this.

“For numerous consecutive years, GPs have been forced to either absorb additional costs as the MBS patient rebates fall further behind inflation, or charge a gap fee to cover associated running costs of their practice.”

“Despite claims to the contrary, tonight’s freeze will have continuing impacts for patients’ ability to access bulk-billing services,” Dr Marles said.

“Deterring patients from making regular appointments with their GP will inevitably lead to poorer health outcomes down the track. Many patients will end up accessing more expensive hospital care with diseases that may have been prevented if regular GP appointments were accessible and affordable.

In other Budget announcements, the RACGP welcomes the Government’s commitment to provide $23.8 million in 2013-14 to maintain existing service levels for the Mental Health Nurse Incentive Program.

This important program provides coordinated support for people with severe and persistent mental illness and ensures GPs in collaboration with mental health nurses continue to provide clinically relevant support to approximately 60 000 patients.

In a boost for the general practice rural workforce, the Government announced it will provide $33.8 million in 2013-14 to continue to support the General Practice Rural Incentives Program (GPRIP) which provides relocation and retention incentive payments to encourage medical practitioners to work in rural, regional and remote areas.

The RACGP will undertake a full Budget analysis over the coming days identifying areas affecting GPs and our patients.

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RACGP Overview of the Federal Budget 2013-2014 (Health and Ageing) - 16 May 2013 (PDF 73KB)


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