Prime Minister Malcolm Turnbull has tried to clarify Health Minister Sussan Ley’s claims her push to lift the Government’s freeze on Medicare rebates is being blocked by departmental red tape.
The Government announced in this month’s budget the indexation freeze would be extended until at least 2020, which doctors are warning will lead to less bulk billing.
Ms Ley said this morning she wanted to lift the freeze but the Finance and Treasury departments were not “allowing” her to make the change.
Mr Turnbull said the indexation freeze would “end at some point” in the future and, despite doctors’ warnings, bulk billing rates were still high.
Mr Turnbull said the Medicare rebate freeze would remain until the economy improved.
“The reality is the freeze will end at some point, clearly. The question is it will end when we judge it is affordable within the context of the health budget, that’s all that Sussan is saying — it’s common sense,” he said.
“The really important issue is this: are Australians receiving the best health care affordably? The answer is in terms of affordability, bulk billing has never been higher.
“Mr Shorten is not telling the truth about Medicare, he is trying to frighten people as he goes around the country putting more and more billions on his ‘spend-o-meter’ because he doesn’t care how much he spends.”
Rebate freeze costing patients: GPs
Ms Ley told the ABC she would like to see the return of indexation of Medicare rebates.
“I understand for doctors that the GP freeze has been difficult and I appreciate they’re working with us,” Ms Ley said.
“I’ve said to doctors I want that freeze lifted as soon as possible but I appreciate that Finance and Treasury aren’t allowing me to do it just yet.”
The Federal Government said the measure would save $925 million, but GPs argue their practices have been largely absorbing the cost of the indexation freeze, and services would be affected if it continued.
GPs have warned they could be forced to charge a larger gap to fee-paying patients, choose to bulk bill fewer patients or ask patients to return for further appointments for follow-ups.
Despite the freeze on the rebate, bulk billing rates have continued to grow and are at a high of 84 per cent.
Ms Ley said the cost to doctors would be reasonable.
“I’m surprised that a bulk billing incentive that’s worth about 60 cents per consultation now and maybe $2.50 by the end of the forecast period would cause additional payments of $20-25,” she said.
“I think we need to be careful about what is actually going on … 60 cents a consultation is not a huge amount.”
Opposition health spokeswoman Catherine King said Ms Ley had indicated to doctors the freeze on Medicare rebates would be lifted in the budget.
“Doctors have said the shock that they got at the 2016 budget … that the freeze was not going to be lifted as the minister had in fact given them a nod and a wink that she was planning to do, that in fact she got rolled in Cabinet on this issue, that it was being extended — that’s the tipping point for them.”