Australian Economic Issues: Medicare Co-Pay System

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Australian Economic Issues | FEDERAL BUDGET 2014-15: $7 Medicare Co-payment | Alexandra Rose | Due date: 18 June 2014 Federal Budget 2014-15: $7 Medicare co-payment “The Medicare co-payment - perhaps the most difficult policy change in this budget.” –PM Tony Abbott The Abbott Liberal Government’s first Budget (2014-15) is an important step in getting Australia’s debt and deficit of $667 billion under control. The Australian Government is pursuing a goal of budget surpluses over the medium term so that the Government is not directly adding to Australia’s savings imbalance. The 2014-15 Budget supposedly takes the steps to put the growth in health spending on a sustainable path. Therefore, all Australians will…show more content…
It will be the sickest people who pay the most, no matter what you do on a user-pays basis. However, Federal Health Minister Peter Dutton continues to reaffirm that as our population ages and Australians need to pay for new technologies and new life-saving drugs, which Australia has a system that will continue to grow and strengthen into the future. There are overall effects, both positive and negative, of the $7 co-payment on the Australian economy and society. Such negative effects on the economy include the fall in share prices for healthcare companies. In the first week since budget night, Primary Health Care share prices fell 6%. This will reduce consumer confidence in healthcare companies, resulting in a fall in demand. There is the likelihood Australian people will put off visiting their GP because of the co-payment, therefore resulting in an overload in hospitals which could potentially cost the government more. Due to the co-payment also applying to imaging services, people are unlikely to find out if something is wrong with them because they may be put off by the co-payment, possibly increasing mortality…show more content…
& O’Mahony, J. 2013, Australia in the Global Economy, Pearson Australia Group Pty Ltd, Australia. Newspapers: Sydney 2014, “Medicare co-payment and health to be fully examined” The Examiner, 10 June 2014, p10. Canberra 2014, “No Modelling done on Medicare Co-payment,” The Examiner, 3 June 2014, p14 Stephens, J. 2014, “Finding ways to sustain the healthcare we need,” The Examiner, 3 June 2014, p15. Pamphlets: Abbott, T. (authorised by Andrew Nikolic MP) Getting on with the Job: Australia’s Economic Action Strategy, 2014. Websites: Mayer, K, 2 June 2014, The Founders of the Co-payment Accessed: 3 June 2014 URL: Jones, T, 30 May 2014, Government on track to drive up healthcare costs Accessed: 3 June 2014 URL: McGrath, P, 20 May 2014, Medical centre giant send mass text message Accessed: 31 May 2014 URL: Uhlmann, C, 16 May 2014, Dutton defends introduction of doctor visit fee Accessed: 27 May 2014 URL: 30 May 2014, The Opposition warns the government is on track to drive up healthcare costs Accessed: 30 May

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