Media release

Private health numbers heading in the wrong direction

A decline of .2 per cent in private health membership for the June quarter is a disturbing result at a time when the Government is spending $15 million of taxpayers' money to promote private health insurance gap cover schemes.

Today's figures follow similar falls in the past two quarters.

AMA President, Dr Kerryn Phelps, warned today that this trend would accelerate unless the Government addressed the fundamental issue of adequately funding Medicare.

"The figures show that the average gap payment where patients are required to pay a gap has gone up by more than $3.00 in the last quarter," Dr Phelps said

"The real cause of increasing gap payments for patients is an inadequate Medicare rebate.

"With increases in medical indemnity insurance and practice costs, including GST compliance, the gap will continue to widen without increased Government funding of Medicare.

"It is clear that the $15 million would have been better spent as a downpayment to reduce gaps through increased Medicare rebates.

"It is not too late. The Government and the Opposition have time to show voters they are seriously committed to Medicare by announcing appropriate health policies and funding to send private health membership - and Medicare - back in the right direction," Dr Phelps said.

Membership of Private Health Insurance:

June 2001 quarter 44.9%

March 2001 quarter 45.1%

December 2000 quarter 45.4%

June 2000 quarter 45.7%

21 August 2001


CONTACT: John Flannery (02) 6270 5477 / (0419) 494 761

Sarah Crichton (02) 6270 5472 / (0419) 440 076

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