GP co-payment by stealth as prescription medicine costs rise
IN a move that is likely to force doctors to abandon bulk-billing, Medicare rebates will be frozen at $37 for six years to save the Government nearly $1 billion.
Budget 2016
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THE dreaded GP co-payment has risen from the grave in the Federal Budget with a doctor’s visit likely to cost up to $39 at the same time as prescription medicine prices rise by $5 from January.
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Medicare rebates will be frozen at $37 for six years until 2020 to save the Government nearly $1 billion in a move that is likely to force doctors to abandon bulk billing.
The freeze is expected over time to cost a typical GP over $15,000 a year as they face rising wages bills and rents but no increase in Medicare income.
Former prime minister Tony Abbott declared his unpopular $7 GP co-payment “dead, buried and cremated” in 2014.
This Budget measure, however, is certain to force many GPs to abandon bulk billing and start charging their patients a fee to cover their rising practice costs.
Medicare rules will force GPs to charge patients a full fee upfront and patients will have to claim back the $37 Medicare rebate to offset the charge.
The AMA recommended fee for a doctors visit is $76 and if doctors charge this amount a doctor’s visit could leave patients $39 out of pocket after the Medicare rebate is claimed.
Patients are also likely to face higher out-of-pocket charges for medical specialists as a result of the freeze.
The introduction of doctors charges will be accompanied by a hike in prescription costs with the Government pressing ahead with plans to raise prescription costs by $5 for general consumers from January 1.
Pensioners will face an 80 cent rise in prescription fees on January 1 under the measure which has been blocked by the Senate for two years.
Health Minister Sussan Ley has repeatedly said she does not plan to go ahead with the $5 prescription hike but the Government has not removed it from the Budget and is still counting the savings to reduce its budget deficit.
These new charges come as patients are already facing a $20 charge for blood tests from July as a result of government cuts to pathology and as cancer patients are expecting $800 fees for scans to diagnose and track the progress of their disease.
Families will also lose access to $1,000 worth of free dental care at their family dental practice with the Government axing the child dental scheme in the Budget to save $1 billion.
Families who want government-funded dental care will instead have to queue at public dental clinics where waiting times can be up to 933 days.
In NSW there are 110,000 people already waiting for public dental care, the wait is 209 days in Victoria, 309 days in Queensland, 260 days in South Australia, 933 days in Tasmania.
Currently one million children are using the dental scheme, Health Minister Sussan Ley says she will be funding 600,000 services for 10 million adults and children.
Aged Care services will also be hit by a $1.2 billion funding cut over the next four years as the government tries to restrict access to higher cost complex care packages.
The Government will also halve the rate at which aged care funding is indexed.
Originally published as GP co-payment by stealth as prescription medicine costs rise