AMA reiterates support for private health rebate and lifetime health cover
Following meetings today with Shadow Health Minister, Julia Gillard, and Chief Executive of the Australian Health Insurance Association, Mr Russell Schneider, AMA President, Dr Bill Glasson, said the AMA remains a strong supporter of the Government's private health rebate and lifetime health cover policies.
Dr Glasson said he made the AMA's position clear to both Ms Gillard and Mr Schneider.
"The rebate and lifetime health cover have revived the private health sector," Dr Glasson said.
"The health system was running headlong to disaster prior to 1999 and, without the rebate, we would be lucky to have 15-20 per cent of the population privately insured today.
"The Government's policies have lifted membership participation to around 44 per cent.
"Importantly, all the private hospital infrastructure is now being utilised instead of wasted.
"Of the $2.2 billion total spend on the rebate, $1.5 billion is applied to the hospital sector supporting acute admissions.
"If this was not spent, Governments would need to spend a lot more to provide the services in the public sector.
"The privately insured relieve the load on the public system.
"Private patients pay for a place in a public hospital bed which they do not use, or use the bed and pay for it twice - once through taxes and again through their premiums.
"The rebate preserves choice. We have always had a dual system with the public and private sectors complementing each other and providing the best possible system for Australian patients," Dr Glasson said.
The attached graph shows how the rebate and lifetime health cover have eased the pressure on the public hospital system.
CONTACT: John Flannery (02) 6270 5477 / (0419) 494 761
Judith Tokley (02) 6270 5471 / (0408) 824 306