Pensioners face $130 medical hit
The Australian
August 11, 2014
PENSIONERS could be hit with an out-of-pocket rise in their healthcare costs of more than $130 under the government’s budget measures — the impact of the $7 GP co-payment and the increase in the cost of medicines.
Labor has seized on modelling released under Freedom of Information laws by Treasury, which details how pensioners and families will be affected by the budget changes. Co-payments under the Pharmaceutical Benefits Scheme would increase for general patients by $5 in 2015, and for concessional patients by $0.80.
The modelling refers to age pensioner “Joyce”, who purchases 80 medicines a year listed with the PBS. She pays $6.10 for 60 PBS medicines before reaching the safety net under current arrangements, then receives the last 20 medicines for free.
But if the government’s increase to the PBS is legislated, she would pay $6.90 for 62 PBS medicines before reaching the safety net, receiving the last 18 for free.
“Joyce will pay $61.80 more in 2015 for her medicines,” the document states.
When the $7 GP co-payment is added — capped at 10 visits a year — Joyce would pay a total of $131.80 for her healthcare costs.
The analysis — which has been publicly available since the budget but released again last week after an FOI request — also reveals that “Joyce” would pay $114 more than she currently does for medicines by 2018.
Opposition health spokeswoman Catherine King said the modelling was “proof” Joe Hockey had deceived voters.
“This exposes Joe Hockey’s deceit on how his budget would hurt pensioners. He knew, but hid this from pensioners,” Ms King said. “For pensioners, every dollar counts. This is a very big hit to their standard of living.”
Senate crossbenchers John Madigan and Nick Xenophon said the double hit to pensioners was unfair and did not accurately reflect the long-term costs.
“Not only do I think it’s unfair but I think it’s understated,” Senator Xenophon said. “The real cost on the system will be more people getting sicker because the co-payments will dissuade them from going to the doctor. I’m calling for fresh modelling to look at the true costs of this.”
Senator Madigan continued the assault on the budget, revealing that the Treasurer had told him he was “one of the most disliked” Australians.
“(Joe Hockey) said that he’s one of the most disliked, hated people in the country with the budget he’s got to bring down,” he said on ABC’s Insiders.
“I’ve got empathy for him (but) I wonder how much empathy he’s got for those people who are going to be hit hard by this budget.”
His comments came as former treasurer Peter Costello urged the government to scrap the GP co-payment.
“The $7 co-payment is not going to go through. It’s just not going to happen. So let’s move on. I think they have to reboot the whole argument,” he told the Ten Network.
A Treasury spokesman said the 2014 budget would take steps to put health spending growth “on a sustainable path”.
“In terms of the impact of the increased PBS contribution and the Medicare co-payment, we were completely upfront in the budget documents,” the spokesman said. “While continuing to support the most vulnerable in the community, government spending must be targeted to those most in need.”
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