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Medicare policy auction begins: bids getting better but still a way to go - AMA

AMA President, Dr Kerryn Phelps, said today that the ALP's Medicare package is an improvement on the Government's 'A Fairer Medicare' package, but falls short of addressing all the access and affordability issues confronting general practice in Australia.

Dr Phelps said the Opposition's allocation of around $2 billion over four years to increase Medicare patient rebates and GP workforce shortages represents a serious commitment to supporting Medicare but the AMA still has concerns.

"I said at the Press Club last week that the Medicare policy auction would begin today and the highest bid now sits with Simon Crean - but even higher bids are needed to secure Medicare's long-term future," Dr Phelps said.

"The AMA will be holding Simon Crean to his word that this package is a 'downpayment'. But it is a downpayment that will appeal to a lot of GPs, at least in the short term.

"Unlike the Government's 'carrot and stick' package there is no requirement ('stick') to opt-in to this scheme, and there is minimal extra red tape with rebates and incentive payments happening automatically.

"While the average increase to the Medicare rebate - $3.35 rising to $5.00 - is an improvement on the Government offer, it is still grossly inadequate when compared to the increase dictated by the Relative Value Study (RVS) and it is only available when the patient is bulk billed.

"This raises concerns about social equity because the differential rebates are not based on need but on the doctor's billing practice. This proposal effectively abandons the universality of the Medicare rebate. Patients whose doctor does not bulk bill will pay more for their health care as practice costs rise.

"Unlike the Government package, each individual doctor is free to access the increased rebate if they choose to bulk bill individual patients based on patient need, not geography. We welcome incentives applying to individual doctors, not practices.

"But this package does not do anything to address the GP participation rate, which is the most significant impediment to patient access to GPs.

"While the ALP intends to match the Government's GP workforce measures, including increases in the numbers of medical student places and GP registrar training positions, we are disappointed they have chosen to retain the draconian bonding provisions proposed by the Government.

"The Government still has the opportunity to improve its package before the legislation is presented to Parliament," Dr Phelps said.

CONTACT: John Flannery (02) 6270 5477 / (0419) 494 761

Judith Tokley (02) 6270 5471 / (0408) 824 306

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