‘Put an end to Mediscare’: Labor told to move away from ‘scare campaigns’ of past elections

Governments must ‘move on from scare campaigns’ in health policy that have defined elections for the past decade, according to the Australian Unity chief.

Australian Unity managing director Rohan Mead. Picture: David Caird

Governments must “move on from scare campaigns” in health policy that have defined elections for the past decade, with outgoing Australian Unity chief executive Rohan Mead warning Labor is fighting “yesterday’s war” with announcements such as the $9bn Medicare investment.

Mr Mead, who is now the chair of the Business Council of Australia’s health and care services committee, said he had watched political strategy being prioritised over meaningful reform for years and said the country now risked being “overwhelmed” by issues riddling the health sector.

“I’ve been in my position for … some two decades and I’ve watched scare campaigns and a lack of confrontation and fundamental reform occur for all of that time,” he told The Australian.

“Unless we get on with fundamental change in some of these areas … like aged care and healthcare and so on, then we’re going to be overwhelmed, because we’re doing something that no human society has ever done across the OECD. We are confronting mass ageing and we need new economics for healthcare.”

Despite the backlash over ­Mediscare campaigns, Labor’s national secretary, Paul Erickson, in May left the door open to ­reusing the strategy at the next federal election.

Leading health practitioners, including former deputy chief medical officer Nick Coatsworth, also urged the Coalition not to simply mirror government health policies, as it had for the 2025 election, and to present a stronger alternative vision to Australians.

Mr Mead’s call for strategies like Mediscare to be put to rest follows the BCA releasing its Supporting a Healthy and Productive Nation report, which warns the health sector will be financially unsustainable without reform.

As part of its report, the BCA flags possible higher co-payments by those with more means. “For our system to remain sustainable, we must consider whether those who can afford to pay more, should contribute more for their care,” the report, which is released on Tuesday, states.

“Australia stands at a critical juncture in its health and care journey. With an ageing population, rising chronic disease, and increasing fiscal pressures, the sustainability of our health and care economy is under threat.

“We urgently need a renewed focus on the long-term funding of Australia’s health and care system if it is to become sustainable.”

According to data from 2022-23, Australia spends an estimated $252.5bn on health goods and services, with governments contributing $179bn, or about 70 per cent of that amount. As part of its recommendations, the BCA proposed a range of ideas including for the commonwealth to ­provide “incentive payments” to state and territory governments for “the utilisation of private capacity for consumers who have exceeded the clinically approved wait time for elective surgery”.

Incentives should also be provided to states and territories to “utilise virtual health including telehealth and remote monitoring” as a means of reducing demand for inpatient services.

The BCA report and Mr Mead have both raised concerns over the effectiveness of Labor’s $9bn Medicare policy, which will drastically increase incentive payments for doctors and clinicians to bulk bill and aim to have nine out of 10 GP visits made free of charge by the end of the decade.

“If we put $9bn in yesterday’s war, it’s not going to touch the sides,” Mr Mead said.

“We’ve got to start thinking in new ways to actually address the challenge in front of us.”

The BCA report warns that without more ambitious health policy, intergenerational inequity will worsen, with young people bearing the brunt of an ageing population that is straining the health sector.

It follows Treasurer Jim Chalmers raising serious concerns over the way the economy – and tax system in particular – disadvantages younger generations, and indicating his government will seek to address the inequity faced by young Australians.