Outcry against changes to bulk billing

By Corin Kelly
Wednesday, 06 January, 2016


According to the mid year economic and fiscal outlook (MYEFO) changes to the incentives paid to pathology and diagnostic imaging providers to bulk bill out of hospital services will deliver savings of $650.4 million to the budget over four years.
Health Minister Sussan Ley, as reported by Belinda Merhab in The Australian "...concedes some patients may be worse off under proposed bulk-billing changes that doctors warn could have fatal consequences."
From 1 July 2016, all bulk billing incentives for pathology providers will be removed. This includes a $6.00 incentive paid when a child or concession card holder is bulk billed, and a $9.10 incentive paid when such patients are bulk billed in designated rural and regional areas. Additional incentives paid for bulk billing designated pathology services (so-called Group P13 services, with fees ranging from $1.60 to $4.00) will also be removed. For diagnostic imaging providers, only incentives to bulk bill children and concession card holders will be retained, but bulk billed MRI services will attract a rebate equal to 95% of the Schedule fee, rather than the current 100%.
Sussan Ley argues that bulk billing incentives for pathology are not needed due to the high rates of bulk billing in this sector and its competitive nature, and these changes—aimed at providers—should not affect the majority of consumers.
Opposition health spokesperson Catherine King argues the changes to incentives will hurt patients, and those needing intensive treatment may face higher out of pocket costs or miss out on treatment altogether if they cannot afford the additional cost.
Doctor and patient groups are also critical of the measure. The peak group representing pathology providers, Pathology Australia, warns that bulk billing rates will fall leaving patients facing higher out of pocket costs, or patients deferring or declining essential tests. In addition, they argue that some pathology collection centres may be forced to close—including those in rural and regional areas and in hospitals—due to the high costs of maintaining these centres. They are also critical that the changes were announced outside of the Medicare review process currently underway.
Read the full articles from the Parliament of Australia and The Australian

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