Government backs down on $20 GP fee

Government backs down on $20 GP fee

The Abbott Government has dumped plans to slash Medicare rebates for short visits to the doctor that were due to start on Monday in the face of a fierce backlash from medicos and likely defeat in the Senate.

With Labor, Greens and crossbench senators planning to reverse the change when Parliament resumes in three weeks time, the Government has decided to cut its losses.

It means doctors will be spared a $20 to $25 cut to the rebate for consultations lasting less than 10 minutes – a slug they had warned would have to be passed on to patients.

Not going ahead with the rebate cut punches a $1.3 billion hole in the Budget.

Announcing the back down, new Health Minister Sussan Ley said she would immediately begin consultations with the medical profession and crossbench senators on overhauling Medicare.

Despite the opposition to co-payments, Ms Ley said the Government remained committed to introducing a price signal for the health system.

She conceded the changes meant to start on Monday though had caused confusion for patients and doctors.

“The Government is taking them off the table,” he said.

“However it remains critical we implement changes to ensure quality care for Australians and a secure future for Medicare.”

Ms Ley said the four principles that would guide her consultations were protecting Medicare for the long term, retaining bulk-billing for vulnerable and concessional patients, maintaining high quality care and a modest co-payment for those with the capacity to pay.

The back flip comes a month after Tony Abbott abandoned his original plan for a $7 co-payment.

As part of package put forward in December, the Government proposed Medicare rebate paid for doctors’ visits of less than 10 minutes slashed by $20.10 to $16.95 for concessional patients, and $11.95 for non-concessional patients. These short consultations are typically used for renewing prescriptions or immunisations.

The Government argued the change would end so-called “six minute medicine” where doctors churn through appointments and instead encourage GPs to spend more time with their patients.

But doctors in recent days have attacked the cut, saying it could make some GP practices unviable, end bulk-billing and force patients into emergency departments.

Labor, the Greens and crossbench senators said on Wednesday they would move a motion in the Senate to disallow the reduction in the rebate when Parliament resumed in February.

By not going ahead with the rebate cut now, the Government has avoided what would have been a certain defeat.