Prime minster Tony Abbott of Australia, unveils new plans for health care


It seems the Australian government is taking a different look at the proposal it unveiled in  May concerning their health care system.

The prime minister Tony Abbott said that the proposal did not have the support of the senate.

The process to go about it has been mapped out by the Australian government, henceforth it is agreed that the government will cut the amount it pays to GPs to see adult patients by A$5, with doctors to decide whether or not to pass that cost on to patients.

The measures that the Australian government took on their health care in May,  came down with strong criticisms.

Mr Abbot said he was now offering “a new and improved proposal which indicates that this is a government which is always capable of listening, learning and improving”.

He said there would be no change to “bulk building” fees – where doctors charge the government directly for a patient’s visit – for children under 16, pensioners or veterans.

However, adults who do not receive health concessions from the government would potentially face a $5 visit fee, if their healthcare provider chose to charge a so-called “co-payment” to make up for the reduced government rebate.

“In the end, though, this is a question for the doctors, and what we’re saying to the doctors is for adults who aren’t on concession cards, we don’t think it’s unreasonable for you to charge a co-payment,” Mr Abbott said.

Mr. Abbott concluded with a genuine reason that the changes would save A$3.5b over five years.

Bellow is how the Australian health care system works.

How does Australian Medicare work?

  • Healthcare is provided by both private and government institutions.
  • The government funds its Medicare system via a 1.5% levy on everyone except low-income earners, with the balance being provided by the government from general revenue.
  • An additional levy of 1% is imposed on high-income earners if they do not have private health insurance.
  • As well as Medicare, the government funds a separate Pharmaceutical Benefits Scheme that subsidizes a range of prescription medications.

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