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23 September 2014

Government report undermines its own attempt to justify $7 co-payment

Today’s report by the Australian Institute of Health and Welfare’s (AIHW) Health expenditure Australia 2012-13 raises major questions around the long held government view of justifying the controversial $7 co-payment for GP services.

The Royal Australian College of General Practitioners (RACGP) reaffirms its opposition to the Government’s proposed co-payment, with the report revealing health spending in 2012–13 slowed to record low levels, falling by $24 million or 2.4 per cent.

Whilst the Government has tried to justify the $7 co-payment for general practice services on the claim healthcare expenditure is out of control, the report shows it is out-of-pocket expenses for patients that have dramatically increased, with the Australian public funding 17.8 per cent of all healthcare spending.

RACGP President-elect, Dr Frank Jones said the report findings come as no surprise to the RACGP who have strongly opposed the co-payment since it was first rumoured in December 2013. 

“The Government’s claim that healthcare expenditure is out of control does not align with the factual content of this report,” said Dr Jones.

“The report adds to the mounting body of evidence that the Government’s calculations are incorrect and can no longer justify the introduction of a $7 co-payment to the healthcare community or the broader general public.

“They are trying to rationalise an unfair policy on false pretences, abolishing access to universal healthcare in Australia and creating an additional barrier to vulnerable patients with serious healthcare needs.

“There is no financial evidence to support the need for a co-payment or a cut to the Medicare rebate in general practice, and the RACGP has repeatedly voiced its concerns about the dangerous implications of such a move on health outcomes for all Australians.   

“The Australian public has also vocally expressed its concerns regarding the impact of a co-payment model.”

Any co-payment model will place undue pressure on the hospital system as patients who fail to seek care at a primary healthcare level drive increased emergency presentations with more complex medical conditions.

“The RACGP has tirelessly argued that general practice is the solution to achieving financial savings in the healthcare system, not the problem,” said Dr Jones.

“Creating an additional barrier to a system already fraught with complications will only push Australia closer to a US-style two-tiered system leaving the ‘have nots’ and the unwell even further disadvantaged.”

Driving continuity of care, not co-payments, must be the Government’s highest priority when seeking to reduce healthcare costs.

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


Media enquiries

Journalists and media outlets seeking comment and information from the RACGP can contact John Ronan, Ally Francis and Stuart Winthrope via:

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