A new report has found Federal Government health spending has dropped to a record low.
The Australian Institute of Health and Welfare report found health spending dropped to 1.5 per cent during the past year, the lowest growth in health expenditure since the 1980s.
Institute director David Kalisch said, in the past decade, growth in government spending was around 5 per cent a year.
He said the main drivers were significant drops in spending on the Pharmaceutical Benefits Scheme (PBS), public health, dental services and e-health.
“It’s surprising to see government spending actually decline in a number of areas. A number of these key policy choices and decisions of government have been known for some time, but they just came together in one year, so that’s what’s delivered this decrease,” he said.
The findings prompted the Australian Medical Association to call for plans for a $7 GP co-payment to be scrapped.
AMA national president Brian Owler said the figures showed there was no need to introduce a co-payment, with health spending well under control.
“We would say to the Government that these figures actually show that healthcare spending is certainly not out of control and there is absolutely no need for them to introduce a GP co-payment, let alone cut the Medicare rebate by $5,” he said.
Associate professor Owler said the AMA would continue to oppose the Government’s current proposals.
He said he would push for an alternative model that included a modest co-payment, with protections in place for vulnerable patients, and more investment in general practice.
The Government has proposed a co-payment which would mean patients pay an extra $7 for seeing a GP, getting a blood test and having scans.
Labor, the Greens and the Palmer United Party have all opposed any plans to introduce a GP co-payment.