GP co-payment: Tony Abbott declares contentious policy 'dead, buried and cremated'

Updated

Prime Minister Tony Abbott has declared the contentious GP co-payment "dead, buried and cremated".

The statement revives his famous phrase used in relation to the Howard government's unpopular WorkChoices policy.

The Government announced the death of the GP fee earlier today, with Health Minister Sussan Ley conceding that it "does not have broad support and will not proceed".

Federal Cabinet discussed the move to dump the contentious measure last night and the decision was taken to the joint party room this morning.

"We recognise that we cannot introduce reforms to build a strong, sustainable Medicare without the support from the public and the Parliament," Ms Ley told a lunchtime press conference.

"It is clear the proposal for a co-payment and associated $5 cut to the rebate do not have broad support and will not proceed."

However, the Opposition has pressed the Government over the decision in Question Time, repeatedly asking when a new version of the co-payment would be introduced.

Mr Abbott responded that there "won't" be a new GP fee.

"Madam Speaker, I have learnt, I have learnt, Madam Speaker and what I have learnt, Madam Speaker is that the co-payment is dead, buried and cremated," he said, eliciting jeers from across the chamber.

The original proposal would have saved $3.5 billion over five years according to the budget figures released last May.

The Government has not outlined an alternative plan to make up the savings shortfall.

Ms Ley said she was continuing to consult with the medical professionals to find other policy options "to ensure we can keep on supporting high-quality care and treatment".

Labor's health spokeswoman, Catherine King, said the Government was dumping the plan because Mr Abbott's leadership was under pressure.

"Whatever Tony Abbott announces about his GP tax ... it will have one aim in mind, and that is keeping his leadership on life support," Ms King said prior to Ms Ley's official announcement.

Under the Government's original budget plan, bulk-billed patients would have been charged $7 to see a doctor, with some of the proceeds put into a new medical research fund.

But in December - facing opposition in the Senate - the policy was dumped in favour of a $5 "optional co-payment" charged at doctors' discretion.

Palmer United Party leader Clive Palmer, whose party holds crucial crossbench votes in the Upper House, said this morning he did not support any changes to Medicare at all.

"We don't think you should tamper with Medicare at all, that's the reality of it," he told ABC News Breakfast. "Every Australian should be entitled to best health care."

"More frequent visits is more preferable instead of expensive surgery and a long time in hospital."

Government should focus on other health policy: AMA

Australian Medical Association president Dr Brian Owler welcomed the confirmation.

"The policy was never one which was going to improve general practice or make the healthcare system more sustainable, so we are pleased that finally we can end some of the uncertainty around that aspect of the co-payment proposal," he said.

He said the Government now needed to focus on other aspects of health policy.

"We've spent the last 10 months haggling over co-payments and I think the tragedy of this whole period is that other health policy has been neglected," he told News 24.

"What we really need to do is get on with discussing issues around training the GPs and specialists that we need for the future, [including] how we improve the number of doctors in rural and regional areas, a whole range of other issues around public hospital funding and the role of private health insurers in our healthcare system."

Dr Owler said part of the longer-term debate would involve discussion of the system of "blended payments" currently used by the Department of Veterans Affairs.

"For a small group of patients, that may work to encourage people to have better chronic disease management," he said.

"But fee for service will still underpin the Australian healthcare system for the foreseeable future.

"I think the issues at the moment are to deal with the uncertainty not only around the $5 cut to the rebate but also around the freeze to indexation, which will have consequences not just for patients and their rebates when they see a GP, but also when they have care by a specialist as well."

Topics: government-and-politics, federal-government, liberals, health-policy, doctors-and-medical-professionals, australia

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