| Publication: | Courier Mail |
|---|---|
| Date: | 13 May 2009 |
THE Rudd Government has made it more expensive to have a baby by capping out-of-pocket expenses for IVF and obstetrics services.
In a war against greedy doctors gauging the Extended Medicare Safety Net, the Health Department will from 2010 reduce what it will pay out in out-of-pocket expenses, under a $450 million move that will cost inner-city mothers more but may be less expensive for mothers in regional or remote areas.
The medical overhaul includes an assault on higher-income earners, who will now receive less government assistance for private health insurance and will face an increase in costs if they opt out of private health and place more pressure on the public health system.
Singles who earn more than $75,001 (couples $150,001) and are aged up to 65 years old will now receive a 20 per cent rebate instead of 30 per cent, set up by the former Howard government. The surchage for avoiding private insurance will remain at 1 per cent.
For those singles who earn more than $90,001 (couples $180,001) and are aged up to 65 years, the rebate will be provided at 10 per cent. And those who refuse to pay for insurance will be taxed 1.25 per cent.
Under the final tier, singles who earn more than $120,001 (couples 240,001) no rebate will be provided and they will be taxed 1.5 per cent if they snub private health insurance.
The new measures will provide a new battleground at the next election with the Opposition likely to attack the Government for broken promises.
In Opposition, Kevin Rudd and Nicola Roxon said Labor would retain the Medicare Safety Net, which was introduced in 2004.
"With about 1 million people each year receiving some cost relief from the safety net, Federal Labor will not put more pressure on family budgets by taking that assistance away," Labor said in a press release.
And Julia Gillard in Opposition in 2005 said: "Labor completely opposes any cutback to Medicare funding of IVF".
But the Government has argued that some obstetricians in the nation's cities charge exorbitant fees and should no longer be able to drain the system.
The complex measure, that will save the Government up to $450 million over five years has yet to set a cap for IVF, leaving protracted negotiations with the Health Department and the industry.
The cap has been sent at $30 for antenatal attendance, $200 for planning and management of pregnancies and $300 for labour.
Health Minister Nicola Roxon said money needed to be spent on reducing costs for patients and not on "providing excessive windfalls for medical specialists".
"For each item that is capped the Government will only provide safety net benefits up to a maximum amount," Ms Roxon said.
"Patients who are charged reasonable fees will continue to be supported by Medicare and the safety net but specialists will no longer be able to increase their fees excessively, assuming that taxpayers will pick up most of the cost."
