07 July 2014

$7 co-payment will hit patients’ hip pocket harder than expected

Leading primary healthcare research shows the effect of the Government’s $7 co-payment for general practice services will hit patients’ hip pocket harder than the Government has suggested.

The report, released today by the Bettering the Evaluation and Care of Health (BEACH) program, reaffirms the Royal Australian College of General Practitioners (RACGP) long standing position against the introduction of a co-payment and the removal of universal access to healthcare.

RACGP President, Dr Liz Marles said the report, which estimates the economic impact of the implementation of a co-payment model, confirms the RACGP’s concern the model will force Australian’s to think twice about accessing healthcare due to out-of-pocket costs.

“The reality of the co-payment is the out-of-pocket costs for general practice services go well beyond the nominal $7 figure here and there that the Government would like the public to believe.

“In fact, over a quarter of adult general practice consultations involve at least one test equating to at least $14 in co-payments, and approximately 3% involve imaging and pathology testing equalling at least $21 in out-of-pocket costs for a single visit to the GP.

“Even before the announcement of the co-payment, Australians were choosing to delay or avoid seeing their GP due to associated expenses. The introduction of a co-payment will only further exacerbate this alarming trend,’ said Dr Marles.

The report also found that under the proposed changes to the Pharmaceutical Benefit Schedule (PBS) medication co-payment, the overall cost increase for medications will be higher for concessional patients compared with general patients, despite a lower individual co-payment rate.

The co-payment on medications only applies to medications that cost more than the co‐payment amount. Medications that cost less than the co-payment threshold will not be affected.

“Concessional patients have far more medications prescribed that will incur the full co‐payment increase, ranging from an average 0.87 medication per consultation for children to 3.54 medications per consultation for older patients.

“This poses a serious concern that even if patients choose to visit their GP; the increase in costs incurred by the patient for medications will lead to more patients not filling their necessary prescriptions.

“Combined, the co-payment on both of these crucial primary healthcare services will result in an average additional cost to patients from $36 for children to $122 for patients aged 65+ per year.

“Families, the elderly, and Australia’s most vulnerable populations will be particularly hard hit if the co-payment is implemented and will no doubt think twice about accessing clinically appropriate and timely healthcare and potentially rely heavily on more expensive hospital services.

“By proposing such a model, the Government has seriously compromised every aspect of the healthcare system at the detriment of the patient and the general practice profession who are both forced to absorb the costs of primary healthcare delivery,” said Dr Marles.

The RACGP is committed to achieving the best possible health outcomes for all Australians and will continue to advocate for a ‘Healthy Profession. Healthy Australia.’ 


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