Member Services
- Text Decrease
- Text Increase
- Print Page
Compensation scheme needed for Victorian hospitals
12 May 2009.
Any reduction in privately insured Victorians due to Federal Budget changes must result in compensation for Victoria’s public hospitals, according to AMA Victoria.
AMA Victoria today called on the Premier, John Brumby, to seek assurances that the Victorian health system would be compensated if the Federal Government’s changes resulted in fewer people covered by private health insurance.
AMA Victoria President Dr Doug Travis said means testing private health insurance rebates may result in some Victorians dropping their private health insurance. Fewer people with private health insurance means more people will be reliant on public hospitals.
"Victoria’s public health system is already stretched to breaking point," he said. "If the Federal Government expects our public health system to care for more patients, some compensation is reasonable."
Dr Travis said in the past, Australian Health Care Agreements (AHCAs) – the five year inter-government agreements which determine the federal contribution to state health systems – contained a clause to compensate states for substantial reductions in private health insurance take-up.
"This clause was designed to compensate states for the added pressure put on the health system by a reduction in private health insurance," he said. "When Mr Brumby signed the new National Healthcare Agreement a few months ago, he signed with the understanding that private health insurance rebates would be retained.
"Clause 27(f) of the National Healthcare Agreement commits the Commonwealth to subsidising private health insurance. Victoria accepted a lower amount of funding on the clear understanding that private health insurance rebates would remain.
"The Federal Government has cut the rebate, so Victoria must demand compensation if the Federal action results in fewer patients covered privately," Dr Travis said.
"The Premier must seek a guarantee from the Federal Government that Victoria’s public hospitals won’t be worse off from decisions made in today’s budget."
Victorian Medical Directory
Quick Reference Links
Networks
Preferred Providers
Next
Prev