The already-stretched public hospital system will struggle to cope with the influx of people who have deserted private health, Mr Hockey said.
“Australians with significant mortgage stress are in fact going to find it harder to pay their health insurance premiums than previous years,” he said.
“If you are going to move 400,000 extra people from the private system to public hospitals – or as (Treasurer) Wayne Swan says, millions of people from private hospitals into the public system – it is a catastrophe for our already over-run public hospitals.”
And if you don’t think the change in the medicare levy will have an impact, then just check the markets:
At 1031 AEST Monday, NIB shares were 16 cents, or 17.78 per cent, lower at 74 cents.
Shares in private hospitals operators Ramsay Health Care Ltd and Healthscope Ltd also fell sharply.
Ramsay was down 77 cents, or 6.14 per cent, at $11.78, and Healthscope reversed 29 cents, or 5.54 per cent, to $4.94.