Coalition Attacked On Health Policy
The Age
Thursday December 10, 1992
The average family would be forced to pay an extra $20 a week to maintain access to health and hospital services under the coalition's Fightback policy, according to a Federal Government report.
The 68-page report on the Opposition's proposals for health, will be released by the federal Health Minister, Mr Howe, in Canberra today.
It predicts a blowout in health costs, a widening gap between the health care available to rich and poor, and a bonanza for doctors and insurers under the coalition.
It accuses the coalition of a ``cruel hoax" in selling its incentives and penalties scheme to encourage the taking of private health insurance, arguing that the rebate it offers does not come close to covering the insurance cost of access to private hospitals.
The office of the Opposition health spokesman, Dr Woods, said yesterday that the Federal Government's claims appeared to be nothing more than a regurgitation of old claims, based on inaccuracies, selective figures and exaggerated worst-case scenarios.
A spokeswoman for Dr Woods said the calculations were flawed because they failed to recognise that free-market competition would hold doctors' fees down, and that increased private health insurance would both reduce premiums and free beds in public hospitals, making health more accessible and equitable.
The analysis quotes Department of Health, Housing and Community Services estimates that the extra cost of basic-table hospital insurance, plus gap insurance for out-of-hospital medical services, would add $1140 to the annual family health bill.
For families, this is made up of $10 a week to pay the full cost of basic insurance, $6 a week for gap insurance and about $5.75 per week for the associated costs of medical services, including compulsory charges.
The report argues that the coalition's insurance incentives-penalties system is being falsely marketed on the ground that it will help people into private beds.
Under Fightback, high-income earners who do not take out private cover will be penalised, and low and middle-income earners who purchase health cover will be offered tax rebates ``entitling them to access to private hospital beds and the doctor of their choice".
According to the Government figures, the highest rebate offered by the coalition _ $800 a year for a couple over 65 earning less than $14,500 _ barely covers the cost of basic health insurance. It says low and medium-income families earning up to $30,000 a year would have to find an extra $400 to $600 a year to purchase basic cover.
But basic cover, while it provides for the costs of a private patient being treated in a public hospital, does not provide access to private hospitals.
The basic table provides rebates of about $185 a day, compared with average private hospital charges of nearly $400 a day, according to the figures.
Dr Woods' spokeswoman said the Government's figures exaggerated the costs by quoting figures from top-cover-plus tables, which included insurance for extras.
Although annual costs for basic insurance from four insurance funds are quoted in the Government document at between $759 and $1021 a year, she said that families could purchase middle-range policies providing access to private beds for $850 a year.
The coalition also anticipates insurance premiums dropping as more young and fit people join funds. Premiums have recently been pushed up by high risk patients.
The spokeswoman said gap insurance _ to recoup the difference between Medicare schedule fees and doctors fees _ would be available as an option.
© 1992 The Age