Federal Budget 2015: The $5 GP fee is dead but now we’re facing an $8 GP fee

THE controversial $5 GP fee has mutated: Now patients face being bitten by an extra $8 charge to see a doctor as a result of a new freeze on Medicare rebates in the Budget.

Patients can expect to face a charge of up to $8 to see their doctor, a GP fee by stealth, after the government failed to limit its freeze on Medicare rebates in Tuesday’s budget.

Gap fees to see a specialist are also set to rise and this could drive up health fund premiums.

Associate Professor Brian Owler, President of the Australian Medical Association (AMA) says the freeze on Medicar rebates means doctors will no longer be able to bulk bill. Picture: Kym Smith

While the government finally buried its unpopular $5 GP fee in the budget it will press ahead with a freeze on Medicare rebates to save $1.3 billion over four years.

The Medicare rebate for seeing a GP will be frozen at $37 for four years and the rebate for specialists will also be frozen from July while doctors wages, bills and rents continue to rise.

AMA president Brian Owler says this means many doctors will no longer be able to bulk bill their patients.

A Sydney University analysis has estimated the freeze will cost the average full time GP $9600 a year from July rising to $29,500 by 2017-18.

Doctors will need to charge patients an extra $2.74 to cover costs from this year rising to $8 per visit by 2017-18, the analysis showed.

“If the rebates don’t rise, those costs have to be passed on in out-of-pocket expenses — we will see less bulk-billing, and there is the possibility of seeing a co-payment by stealth as has been alluded to by some,” Associate Professor Owler said yesterday.

Professor Owler warned gap fees for seeing a specialists could rise even further

Specialists fees will also rise as a result of the freeze on Medicare rebates and this could push up the cost of health insurance Professor Owler warns. Picture Thinkstock

“I think there is a real issue for private health insurers, they are going to have to pass on higher private health insurance premiums to people, or, there is a real chance that out-of-pocket expenses for specialist costs are going to rise significantly,” he said.

The AMA is preparing a major campaign against the freeze.

#Budget2015 - funding uncertainty for important organisations, such as @Pall_Care_Aus @AlzheimersAus @FAREAustralia http://t.co/sXdjC9DW33

— AMA Media (@ama_media) May 13, 2015

It has sent its members campaign material and posters explaining to patients why doctors are going to have to introduce patient charges as a result of the government freeze.

Titled “Why you pay gaps for medical care” the poster explains “your Medicare rebate is worth less every year. Government MBS indexation has always been less than increases in the cost of providing quality medical care”.

The rebate freeze starts from July. Picture Thinkstock

Dr Owler said after discussions with Health Minister Sussan Ley he hoped any savings identified by a government review of Medicare rebates would be put towards ending the rebate freeze but the budget makes no provision for this.

No legislation is required to pass the parliament to give effect to the freeze so it can’t be rejected by the Senate, the only way the Senate could stop the measure is to stop any Medicare rebates for any medical service at all.

Health Minister will seek clarification as to why health groups refused access to budget papers http://t.co/sorygFKOpr #auspol #budget2015

— AMA Media (@ama_media) May 13, 2015

“Rises in out of pocket costs appear inevitable as a result of the continued freeze on Medicare benefits paid to doctors. This means that bulk billing is likely to fall in many areas where it is currently above 90 per cent, like Western Sydney,” Consumers Health Forum CEO, Leanne Wells says.

“We have welcomed Minister Ley’s plan to modernise Medicare and improve primary health care. Higher doctors’ bills should not be part of that strategy,” Ms Wells said.

Patients are also facing a $5 hike in prescription costs. Picture Thinkstock

Patients are also facing a $5 hike in prescription charges (80 cents for pensioners) from next January under another measure in the budget but even the government concedes it is unlikely to get this through the Senate, it has already been rejected once.

Health groups are alarmed at up to $1.7 billion in cuts to the health portfolio announced on Tuesday that could see flexible funding grants to hundreds of health groups like Alzheimer’s Australia, the Consumer’s Health Forum, drug and alcohol and mental health services axed or reduced.

The government was yesterday unable to explain which groups would be affected.

Portfolio Budget Statements for Health can be found here http://t.co/Y0GOcJV3RA #Budget2015

— Department of Health (@healthgovau) May 12, 2015

Originally published as Federal Budget 2015: The $5 GP fee is dead but now we’re facing an $8 GP fee