Peter Dutton shifting on GP co-payments

TALKS on the government’s $7 charge on visits to the GP have opened up room for a compromise.

TALKS on the government’s $7 charge on visits to the GP have opened up room for a compromise as Health Minister Peter Dutton negotiates with crossbench senators on the idea of “scaling up” the fee from a lower starting point.

Family First senator Bob Day backed the concept of the $3.5 billion savings measure but called for a shift in the way it was implemented to ease community concerns over paying to see the doctor.

The talks came as government officials countered some of the claims about Australians being burdened by soaring “out of pocket” expenses for healthcare.

Health Department analysis shows one-third of the growth in the out-of-pocket costs is the ­result of consumer demand for non-­prescription medicines ­inclu­ding vitamins and supplements.

Mr Dutton has talked of reaching a compromise in the Senate over the GP co-payment as Bill Shorten vows to block the change while Labor MPs privately ­describe it as the most incendiary budget reform among voters.

The proposal put to him yesterday would require the government to give up much of the $3.5bn saving in the short term in order to make a structural gain over the long term.

Senator Day said his concerns about the GP co-payment centred on implementation rather than the overall aim of making the health system more sustainable.

“There is a right way and a wrong way to go about charging for something that was previously free,” Senator Day said after meeting Mr Dutton yesterday.

“You start very small and then up the price until the resistance kicks in. You then pull back a bit and you have your price signal.”

Palmer United Party Senate leader Glenn Lazarus said the PUP would not negotiate on a $7 co-payment on GP visits.

“They’re determined to get it through but we’re as determined to make sure that it does not get through. There is a real sticking point there,’’ Senator Lazarus told Brisbane radio station 4BC.

Greens deputy leader Adam Bandt said the government was ­resorting to blackmail to get its budget through.

The Health Department has revealed the largest and fastest growing area of out-of-pocket health expenses is non-prescription medicines, including complementary treatments such as vitamins and supplements.

These expenses account for nearly one-third of total out-of-pocket costs, and the average Australian pays about $1075 annually on their healthcare.

“Medical services are about 12 per cent and prescription pharmaceuticals are less than 7 per cent of the total,’’ health officials told a Senate inquiry into out-of-pocket health costs.

In 2007, Australians spent $4bn on complementary medicines and therapies.

Government senators are arguing that the evidence to the committee clearly highlighted that while the total health expenditure funded by out-of-pocket payments had ­remained relatively ­stable over the past decade, there had been significant growth in discretionary spending on non-prescribed complementary medicines. The Consumers Health Forum yesterday said the Senate report, released last on Friday, showed evidence was mounting against the $7 co-payment for GP visits and a $5 rise in medicines.

CHF chief executive Adam Stankevicius said the report recommends the government should not proceed with further co-payments because they would “impact so significantly on the most dis­advantaged in the community’’.

Additional reporting: Rosie Lewis