GP co-payment will prevent two-tiered health system that favours the rich, Joe Hockey says

Updated

Treasurer Joe Hockey has warned Australians to expect a two-tiered health system that will favour the rich if the $7 GP co-payment is not passed.

The Government is battling to find support for its GP fee in the Senate because the Greens and Labor oppose it.

Under the Government's proposal, doctors would be paid $2 and the remaining $5 would be poured into the $20 billion Medical Research Fund.

Mr Hockey says if the Senate does not pass the GP co-payment there will be dire consequences in the long term.

"If we don't, it is inevitable that sometime over the next 30, 40, 50 years you'll end up with a two-tiered system," the Treasurer told reporters at Parliament House.

"Those that can afford to pay can get better medical services because governments aren't able to pay doctors who rely entirely on the Government the same level of remuneration, the same level people in the private sector are able to pay.

"The fact is, if you want to have a sustainable system, no matter what it is you can't rely entirely on government for funding, it is as simple as that."

Mr Hockey says funding medical research is part of making Medicare sustainable.

"The money is going back into helping to find cures for diseases that are over the next 30, 40, 50 years going to cost the health system much, much more - that's a fundamental point.

"If we don't find the cures, then the cost of primary care will grow and grow and grow at a much greater level then they would if we actually find some of the cures and find some of the drugs that will actually make people's quality of life better," he said.

Dutton defends endorsing co-payment without modelling emergency ward effects

Meanwhile, Health Minister Peter Dutton has defended his decision to endorse a GP co-payment without modelling the impact on emergency wards.

The Australian Medical Association has warned the $7 fee will push patients to seek help at hospitals and avoid the fee.

The Government says the states will be able to charge the co-payment on hospital visits too, but some states have ruled that out.

Mr Dutton says many GPs already take a fee for services and do not bulk bill, so the effect on emergency departments is already being measured.

"We see the impact of co-payments now that operate across the country," he said.

"People pay when they come into practices like this and make contributions to their healthcare."

Topics: budget, government-and-politics, health-policy, health, hockey-joe, australia

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