Health organisations support lift in private health insurance threshold
Three key stakeholders in the health sector have expressed their support for the Federal Government’s proposal to lift the income threshold at which people are obliged to pay an additional 1% surcharge on the Medicare levy, if they do not hold private health insurance.
The proposal has been the subject of a Senate Economics Committee Inquiry, and is being debated in Parliament with the Opposition opposing the measure.
While the private health insurers and some private providers are opposing the changes, three peak health organisations have expressed their support of the policy in a joint media release.
The Australian Healthcare and Hospitals Association (AHHA), Australian Nursing Federation (ANF), and the Doctors Reform Society (DRS), have questioned the use of taxpayers’ funds to subsidise private health insurance, and argue the funds would be better spent on reducing the pressure in the public health sector.
Prue Power, executive director of the AHHA, said the concerns of private health insurers regarding the impact of the increase on insurance membership were misplaced, with projections grossly inflated.
Ged Kearney, ANF national secretary, said that the increase in the income threshold meant families and people on low incomes would be relieved of some pressure, as they would no longer be coerced into holding private health insurance to avoid the 1% surcharge.
Tim Woodruff, DRS president, said the crucial thing was to fund and resource the public hospital and health system properly.
AHHA, ANF and DRS are all calling on members of Parliament to act responsibly on this issue and look closely at the evidence as they consider the Bill.
