Media release

Medicare must be spared from Budget cuts

AMA President, Dr Steve Hambleton, said today that Medicare must be spared from any cuts in next week’s Federal Budget.

Dr Hambleton said that the usual Budget rumours are circulating about possible cuts to various Medicare Benefits Schedule (MBS) items, but this year the more serious speculation is about proposals to freeze MBS indexation or to limit access to Medicare safety nets through means testing or higher thresholds.

“Medicare must be quarantined from arbitrary Budget savings,” Dr Hambleton said.

“Cuts to Medicare rebates and changes to Medicare safety nets inevitably increase out of pocket costs for medical care.

“Any short term Budget gain for the Government translates to financial pain for patients and downstream costs for the health system if early diagnosis and treatment is delayed.

“With the Government looking at ways to reduce the Budget deficit, there is talk that they might freeze indexation of MBS fees, in the same way that the Howard Government did in 1996.

“The AMA estimates that such a freeze could save the Government around $1.54 billion over four years.

“That is a lot of money to take out of health when demand for quality health care is rising dramatically.

“The AMA calls on the Government to rule out such a callous raid on vital health funding.”

Dr Hambleton said that the AMA and other groups are working closely with the Government to ensure that Medicare is ‘future proofed’ to ensure patients have access to rebates for safe, effective medical treatments, and that ongoing expenditure is sustainable.

“Medicare cuts at this time would undermine this process,” Dr Hambleton said.

“Our Budget message to the Government is clear – hands off Medicare.”


9 May 2013

CONTACT:         John Flannery                       02 6270 5477 / 0419 494 761

                            Kirsty Waterford                  02 6270 5464 / 0427 209 753

Follow the AMA Media on Twitter: http://twitter.com/ama_media

Follow the AMA President on Twitter: http://twitter.com/amapresident

Media Contacts

Federal 

 02 6270 5478
 0427 209 753
 media@ama.com.au

Follow the AMA

 @ama_media
 @amapresident
‌ @AustralianMedicalAssociation