Government Backs Down on Medicare Rebate Cuts

The new Minister for Health Sussan Ley has dumped plans to cut Medicare rebates in an announcement to the press today.
The rebate for short GP visits  we due to be cut by $20 from Monday 19 January, however Ms Ley announced the changes had been "taken off the table".
"I have become aware of significant concerns and unintended consequences of changes to Medicare rebates scheduled to begin on Monday," she told reporters.
"I am deeply concerned by the misinformation that is causing confusion for patients and confusion for doctors.
"As a result, I'm announcing today that the changes to level A and B Medicare consultation items will not commence on Monday as planned.
The minister, who returned from holidays to make the announcement,  said she would now consult with doctors and the community to come up with "sensible options" for Medicare reform.
Ms Ley said she was still committed to introducing price signals into Medicare including the revised $5 GP co-payment due to start July 1 but pledged to "pause, listen and consult".
"This is very much my stamp, I believe, on the portfolio – that of consulting, engaging and listening.
"It remains critical that we implement changes to ensure quality care for Australians and a secure future for Medicare," she said.
Australian Medical Association President Brian Owler said the government's announcement was a "welcome surprise".
"I think common sense has prevailed and the minister and PM have ended the uncertainty about these changes and now are going to embark on the process of consultation that the AMA has requested all along they do," he said.
Representative bodies including the AMA and Doctors Reform Society were lobbying hard against the proposed changes.
AMA Victoria President, Dr Tony Bartone said: “We are thrilled with this announcement, it was a poorly conceived fiscal policy and was extremely damaging to the long-term viability of general practice.
 
“The AMA has tirelessly lobbied the Government to amend their proposed Medicare changes. “Today’s announcement cements the importance of the AMA – the peak body representing doctors.
 
“We will continue to work closely with Minister Ley as she has not withdrawn the 1 July changes – a 13.5% rebate reduction for the standard Level B GP consult or the 4 year indexation freeze – these policies must also be scrapped. It will be impossible to run a GP practice in 2018 on below-par 2014 rates.
 
“It is telling that Minister Ley explicitly stated that she will “engage, consult and talk to the sector”. This is fundamental and has been absent in all of the Government’s co-payment and Medicare proposals thus far,” Dr Bartone said.