Doorstop - AMA Vice President, Dr Mukesh Haikerwal, Canberra - AMA Submission to the Senate Select Committee into the Future of Medicare and the Medicare Plus package

DR HAIKERWAL:       Well, good afternoon and thank you for attending this doorstop.

The AMA has come to make a submission to the Senate Select Committee into the future of Medicare, the new Medicare Plus package.

The AMA was opposed to the Fairer Medicare package for many reasons.   We believe that the Government's come a long way in the right direction with the Fairer Medicare package alternative, Medicare Plus.

The one item the Senate needs to do is to implement the safety net, the safety net puts a lid on medical expenses that we face when we go to see a doctor, either as individuals or as families.  It's something that is important to achieve long-term medical care without being out of pocket.

We do not want the American system where people are bankrupt because they don't have enough money for their medical fees.

We don't want the UK system where people are hanging around ages on waiting lists.

It's absolutely essential that this legislation is passed.  If the Labor Party doesn't like it they can build on it.

If we do not pass the legislation around the safety net and continue with the other changes of Medicare Plus, Australians will be far worse off than they currently are.

QUESTION:        But even Professor John Deeble was saying this morning that the Government initiative, for example, with bulk billing won't improve the bulk billing numbers, it might just put a floor underneath them.

DR HAIKERWAL:       The bulk billing rates is really something we should not be concentrating on.  What we have is a system where Australians access high quality medical services, initially by their general practitioners and then the specialist practitioners.  The services attract a fee.   If the Government rebate does not come up to scratch then obviously the out of pocket fees the patients will face is higher, as rebates increase and improve, then the out of pockets are lower.

Whilst there are out of pocket expenses it's important there's a lid put on that amount by the safety nets.

Bulk billing itself is no measure of quality care.  Bulk billing is no measure of access of care to patients by Australians.

QUESTION:            Isn't bulk billing something that's important to the Australian public?

DR HAIKERWAL:       Bulk billing is something the public is certainly very fond of.  It affords, allows people access to medical services at no out of pocket costs. 

The problem we face is that since 1983 with the introduction of Medicare the level of rebate that we, as patients, achieve from Medicare does not cover the true cost of providing those services.  In fact the rebate today is worth about 50 per cent of the true cost of providing the service.  

No medical practice, and no service, can continue to discount to at 50 per cent.

QUESTION:             But the Government's estimates are that the doctors stand to gain around $30,000 to $40,000 a year.  This is a pretty handsome increase isn't it for doctors' incomes?

DR HAIKERWAL:       The Government figures that were released over the weekend regarding Medicare Plus and possible gains, failed to consider the cost of providing the services for which they then pay an incentive.

So, for instance, if you take the incentive for computerisation of $750 it actually costs that just for a tech to come set up your computers before you buy them, before you buy the software, and before you actually implement them, and similar things apply across the board with all those other incentives they're talking about.

Ends