Wed 10th Feb 2016

By: Dr Peter DavorenPresident, Doctors' Reform Society041 618 7390
And: Dr Tim WoodruffVice president0401 042 619

MEDICARE SELL OFF: NOW IT’S MEDIPROFIT

“Reports today that the Coalition Government is considering the privatisation of the Medicare billing system should send a shudder through the hearts of every Australian,” said Dr Peter Davoren, president, Doctors Reform Society. “Does this Government have any idea of the challenges for the elderly and disadvantaged in our community when faced with new technology? Will a Chinese company own access to all the personal data of Medicare?”

Medicare (public health insurance) costs about 3 cents in every dollar to run. Private health insurance companies cost about 12 cents in every dollar. Neither are perfectly easy to use for consumers but Medicare has improved somewhat. Technological improvements can continue to improve the system whether done by taxpayer investment through Government or by selling off to the private sector. But what is the bottom line for a private company? Definitely not ease of use by patients. It must be profit.

Technological improvement is a two edged sword. Improvements may benefit the technologically savvy but leave many struggling to cope with the new ways of doing things. The many are likely to include the vast majority of users of the system, the elderly, the poor, and other disadvantaged groups. Will a private company care about them? Or will they just say “this is the new way, adapt? We must make this profitable.”

It’s time the Federal Government made a decision to help make Medicare work better for all Australians, not just for the big end of town, the rich, and the technologically savvy. It’s time to invest our taxes to improve Medicare, rather than sell it off to the highest bidder.