Coalition to proceed with GP co-payments

Advertisement
ScreenHunter_2066 Apr. 16 08.37

By Leith van Onselen

The AFR is reporting that the Coalition Government will proceed with its planned $6 co-payment for GP services, with the measure to be introduced in the upcoming Federal Budget:

The Abbott government will introduce a mandatory $6 co-payment for all GP visits in the May budget, saving a collective $750 million over the next four years…

The co-payment will be capped at 12 visits a year, limiting any extra costs to patients to $72 annually…

Health economists have warned the introduction of a co-payment would shift patients who cannot afford it to hospital emergency departments, which would cancel out any savings.

In principle, introducing a small co-payment for visits to GPs (or emergency departments for that matter) for those that can afford it is a sensible move, in my opinion.

Advertisement

Not everyone should be allowed to consume public health services without incurring a small out-of-pocket expense.

Without some kind of fee, GP services are likely to be overused, without due regard given to the overall cost to taxpayers and the Budget. Better price signals are, therefore, required in order to better ration services – as occurs with other government health services, such as existing payments to a pharmacist for prescriptions.

That said, I would prefer to see “free” GP services maintained for those on health care cards. While a $6 charge is immaterial to most working Australians, those on very low incomes and welfare could find the cost prohibitive, either discouraging them from seeking help or pushing them onto hospital emergency wards (which will presumably remain “free” under Coalition policy).

Advertisement

The Coalition, therefore, needs to ensure that safeguards are maintained for vulnerable citizens, whilst ensuring that the majority with adequate means are charged something when they consume public health services.

[email protected]

www.twitter.com/leithvo

About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.