AMA calls for proper indexation of the Medicare Benefits Schedule (MBS) and no further cuts to medicare rebates

The AMA is today calling on the major parties to commit to proper indexation of the Medicare Benefits Schedule (MBS) and to promise to increase Medicare patient rebates, not cut them.

AMA President, Dr Andrew Pesce, said that Medicare rebates are set by the Government and are paid to patients to assist them with the cost of professional medical care and treatment, but the current rebates do not reflect the realistic cost of providing medical services.

“The next Government must make a significant investment in the MBS in order to stop shifting more and more of the cost of health care on to patients,” Dr Pesce said.

“MBS indexation has not kept pace with the increasing costs of running medical practices.

“The fee charged by a doctor must cover all of the costs of running the medical practice including staff wages, rent, electricity, health equipment, computers, and professional indemnity insurance.

“In order to maintain a high rate of bulk billing and remain financially viable, medical practices have had to increase their charges for patient-billed services.  The patient-funded gap on patient-billed services has therefore increased.

“Consequently, patient out-of-pocket costs are increasing.  In 1998, each person on average contributed $76 towards his or her medical services, but this amount had risen to $102 in 2008 , despite the Medicare safety net covering some of the out-of-pocket costs.

“When Medicare rebates no longer reflect the true cost of providing the service, visits to the GP and having medical tests can become unaffordable for many families.

“There must be better indexation of Medicare rebates and no further MBS cuts if Australia is to achieve genuine health reform and build a greater focus on preventative measures.  Until rebates are at a reasonable level, the next Government must protect Australians from unaffordable out-of-pocket costs for medical services by ensuring there are no reductions to the extended Medicare safety net.

“The MBS Quality Framework was set up earlier this year to review Medicare services and their rebates with the stated objective of ensuring Medicare rebates represent ‘value for money’.  But we don’t want ‘value for money’ to mean more cuts to MBS rebates.

“Upon taking office, the next Government must commit to a comprehensive review of the MBS to modernise the GP consultation items, reduce red tape, and ensure that patient rebates for services provided by all doctors reflect the value of the service provided.

“Indexation of the MBS has been neglected by successive Governments for more than a decade.  The major parties must commit to bringing the MBS into the 21st century,” Dr Pesce said.

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