Perspective on initiatives by Fed Health Minister Sussan Ley that will inform changes to Medicare

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Perspective on Medicare reform

 

Federal Minister for Health, the Hon Sussan Ley MP has announced three new initiatives that will inform future changes to Medicare:

• The establishment of a Medicare Benefits Schedule (MBS) Review Taskforce;

• Creating a new Primary Health Care Advisory Group; and

• Developing clearer Medicare compliance rules and benchmarks.

 

Minister Ley’s full media release Abbott Government to deliver a healthier Medicare can be accessed via this link.

 

Minister Ley has suggested that aspects of the Medicare system are inefficient and do not support the ‘complex interactions’ between primary and acute healthcare delivery. Minister Ley has signified that the government will continue to consult with health professionals, clinicians, experts and patients in relation to key aspects of Australia’s health system and that any future reforms to Medicare will prioritise patient outcomes and budget sustainability.

 

MBS Review Taskforce

 

Professor Bruce Robinson, Dean of the University of Sydney Medical School, will lead a new review of the MBS regime. The MBS outlines the schedule fee for a range of health care services that the Australian Government subsidises, including medical consultations, tests and procedures.

 

The Review Taskforce will assess the 5,500 services listed on the MBS, aiming to identify the services that do not reflect contemporary best clinical practice. In 2014, the Australian Government funded 350 million Medicare services at a cost of $20 billion – an average total of $800 for every Australian.

 

The Coalition has noted that the Commonwealth’s Medicare budget has increased from $8 billion to approximately $20 billion in the past decade

 

Primary Health Care Advisory Group

 

Dr Steve Hambleton, former President of the Australian Medical Association (AMA), will chair a new Primary Health Care Advisory Group, tasked with examining new options to improve care for people with chronic illnesses.

The Advisory Group will identify:  

• The implementation of innovative care and funding models;     

• Ways to more effectively recognise and treat mental health conditions; and

• Streamlining connections between primary health care and hospital care.

 

Medicare compliance

The government will develop clearer Medicare compliance rules and benchmarks to ensure that medical practitioners are not providing inappropriate services. Any changes to the Medicare compliance framework will be undertaken in consultation with medical organisations, patient representatives and clinical leaders.

The Minister for Health has indicated that the government is determined to prevent over-testing, duplication in service provision and ‘unnecessary referrals, duplication, inefficiencies and systemic waste.’