media releases

Today’s announcement by the Minister Roxon that she has approved a 5.78% increase in private health insurance (PHI) premiums means another $200 million in taxes to support private hospitals, said Dr Peter Davoren, President, Doctors Reform Society.

 It’s only 2 weeks since the Federal Government announced that it would not increase its funding to public hospitals back to how it was when the PHI rebate was introduced ie about 50% State: 50% Federal funding. It has ignored matching public hospital funding whilst every year it accepts an increase in the expanding private hospital industry. The best it offered for public hospitals was matching the States for future funding (not current, not past) with the States whilst it pours taxes into the private system which is inaccessible to the majority of Australian taxpayers.

 The fact that the numbers of Australians covered by PHI is at an all time high is a clear indication that increasing numbers perceive the public hospital system to be inadequate. This should be a source of shame by a Labor Government which introduced free access to public hospitals in 1974. Instead, Minister Roxon seems pleased that people are being scared into taking out expensive PHI.

 Many people then are encouraged to use their PHI to go to private hospitals where they find that there are many hidden costs which they struggle to pay.

 The Government should be ashamed of the new figures, rather than pleased.

 Dr Peter Davoren Dr Tim Woodruff                              

President   Vice President      

Doctors Reform Society                         

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