media releases

“Despite long term federal Government underfunding of public hospitals, the Private Health Insurance industry is asking for another huge taxpayer subsidy when it asks for a $200 per year increase in premiums,” said Dr Tim Woodruff, President, Doctors Reform Society.

“Almost one third of the $200, or around $60 is funded by the taxpayer”, said Dr Woodruff. “Also twenty four dollars will go into administration costs to support the grossly inefficient industry, and the rest is available to subsidise those Australians who are lucky enough to be able to afford private health insurance – mainly the middle class and the wealthy… The 56% of Australians who can’t afford private insurance will stay wholly dependent on an underfunded and struggling public hospital system – which the incoming federal Government claimed it was going to fix – while all Australians will remain almost wholly dependant on the struggling public system for serious illness and non elective surgery type care.”

“The Productivity Commission has concluded it can’t come to a conclusion on whether private or public hospitals are better because the Government has not forced hospitals to collect and release the data needed but the evidence from North America is that private for profit hospitals have higher death rates than public hospitals.”

“So in Australia we have a Federal Government using taxes to fund richer Australians to queue jump the public hospital waiting lists and enter private hospitals which may be more dangerous than the public ones they’ve avoided.”

“It’s time the Government was honest with the Australian people,” said Dr Woodruff. “It should immediately begin the gradual removal of the dangerous, inefficient and inequitable taxpayer support for the private health insurance industry. Its time to stop the PHI rebate charade and get back to putting our taxes into our hospitals and health care – not into the pockets of private business and individuals.”

Dr Tim Woodruff
President
Doctors Reform Society

Dr Con Costa
Vice President
Doctors Reform Society

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