published letters

Published in The Age on Sunday, May 24, 2009

Last year even Treasury was predicting some decrease in coverage following the changes to the Medicare Levy Surcharge last year. They and all the stakeholders were wrong (Sunday Age 17/5). As we told the Senate Committee at the time, increasing the price of Private Health Insurance does not mean people drop out. Trying to predict human behaviour is as inaccurate as trying to predict a global recession. Premiums have been rising well above inflation since the PHI rebate was introduced, and the numbers have been reasonably stable except for the initial rise following the Government funded industry scare campaign against public hospitals.

If, instead of fiddling at the margins with PHI, the Government transferred to the public hospitals all the over $3 billion tax dollars which currently support the private industry, we might finally see a return to equity and efficiency for all Australians.

Dr Tim Woodruff
President
Doctors Reform Society