Federal Health Minister Peter Dutton has confirmed the Government’s abandonment of the GP co-payment announced in its May budget will be short-lived, with “different options” already being considered to replace it.
Sources have told the ABC the original $7 co-payment will be dropped by the end of the year as part of what the Prime Minister calls a “barnacle clearing” exercise.
But the Government remains committed to a policy of “price signalling” on Medicare services.
“We are not ruling in or out different options that might be available to the Government and we are determined to send a price signal to make Medicare sustainable,” Mr Dutton said.
The Minister would not be drawn on what “different options” were being considered.
Mr Dutton also acknowledged the original $7 co-payment announced in May appeared doomed and a second approach was needed.
“The Government is pragmatic about the situation in the Senate. We continue negotiations in good faith with the independent senators.”
Government Senate leader Eric Abetz confirmed a “GP co-payment remains our policy”, but added: “I’m not going to speculate as to different methodologies that might be employed.”
At least one Coalition backbencher spoke out against the original budget GP co-payment model.
Queensland senator Ian Macdonald said: “I don’t think this scheme is the right way to go and I have advised both Mr Dutton and Mr Abbott about that and indicated that if this proposal comes forward I would be opposing it.”
Opposition Leader Bill Shorten said there was “division in Government ranks”.
“The Abbott Government wants to change its tactics about its GP tax, but they haven’t changed their mind about the GP tax,” he said.
Labor fears alternate approach to introduce co-payment
Opposition health spokeswoman Catherine King is concerned the Government will try to implement the co-payment plan through regulation rather than legislation.
“What the Government can of course do by regulation is reduce the fee the Government pays to doctors via the Medicare Benefit Schedule … and we’re been calling on them to rule that out,” she said.
The suggestion the co-payment could be reshaped was immediately welcomed by Associate Professor Brian Owler from the Australian Medical Association.
“The AMA has been saying from day one of the budget that this is bad health policy,” he said.
“It would be bad, particularly for vulnerable patients.”
Professor Owler warned the Government against introducing any other measures to raise money, such as increasing the cost of medicines.
It is also not clear what impact the decision will have on the Government’s proposed Medical Research Future Fund.
We have it in us to be better: Abbott
In an address to the National Press Club yesterday, Labor leader Bill Shorten said Australians knew the budget was unfair.
“Every time they scrape off a barnacle, they just reveal another hole in the hull,” he said.
“A new set of talking points won’t fix this budget – it’s like raising the Titanic or re-marketing the Hindenburg, and that’s really hard.”
In an address to the Australian Chamber of Commerce and Industry last night, Mr Abbott focused looked to the future.
“I know that we have it in us to be better than we’ve been,” he said.
Emboldened by the Coalition’s position in the polls, several union figures now feel there is a serious chance they can help make Mr Abbott a one-term prime minister.
‘Barnacle’ clearing likely to extend to PPL
The Coalition was also expected to make further changes to its $5.5 billion paid parental leave scheme, a signature policy for Mr Abbott.
The policy would pay new mothers their full salary for six months.
Mr Abbott had already watered down the scheme, lowering the maximum possible payment from $75,000 to $50,000.
But Education Minister Christopher Pyne told Sky News he would not be raising the white flag on his overhaul of the university sector.
“If I was physically capable of it and had the time, I would go house-to-house if necessary to explain the importance of these reforms because they are vital,” he said.
Senator Abetz said the deregulation of university fees remained “part of our agenda”.
“We would like to see that resolved before the end of the year, and so we are working through that as we speak with the crossbenchers,” he said.