Right Pulse

From the Australian Medical Association on the government’s budget decision to increase the medicare levy threshold:

AMA national president Dr Rosanna Capolingua says the Treasury modelling which suggests that 500,000 people will drop private cover as a result of the changes falls far short of what the figure will actually be.

“The AMA’s modelling was much higher than half a million. It was more like 700,000 to a million people,” she said.

This comes on the back of complaints made by Catholic hospitals. They argue that increasing the levy will just disadvantage those that most need the public hospital system - the poor, disabled and elderly - by increasing waiting times for treatment. In other words, the public system should just be a safety net for those most in need, not for people that could afford private coverage.

Treasury have also admitted, at Senate Estimates, that they have little idea as to the fiscal impact on the public system from the levy decision. That’s policy dudd 101 from Rudd. No wonder NSW Treasurer Costa is asking for Federal $$$ for the future budget impact.

Given the divide within the ALP on this issue, the opposition would be justified on blocking the policy in the Senate by explaining to people that it will not save them money, but increase the burden on public hopsitals, which invariably will require more tax $$$ to fix. Public health care is not free.