Home > Our Publications > Australian Outlook> 2004 > June

THE FEDERAL Government has been forced to change its current Medicare system, and it will now provide more services for more people - mainly for the lower paid, the elderly and children.
Up to 500,000 Australians will get extra help to pay big medical bills after the Government was forced into another funding boost for its $2.85 billion Medicare package.
Under the deal, the Government agreed to lower its Medicare safety net thresholds after which taxpayers pick up 80 per cent of any further medical bills - from $500 to $300 for concession cardholders and family tax benefit recipients, and from $1000 to $700 for everyone else.
The move is expected to help 490,000 families or individuals a year by 2007.
It also agreed to pay GPs in rural and regional areas and all of Tasmania - an extra $7.50 per patient to bulk-bill concession cardholders and children under 16.
It will also pay physiotherapists, dieticians and chiropractors $220 for a five-visit treatment plan for patients with a chronic illness.
The pact also will provide $20 million over four years to fund limited dental services for patients whose oral health problems are linked to a chronic medical condition that must last at least six months.
The new MedicarePlus package will also cover people for up to three GP-referred visits to a dentist - but only to a total of $220.
The Australian Dental Association federal vice president Bill O'Reilly said just a general visit to a dentist could cost $120.
"It will provide dental services to the members of our society who are chronically ill, and that's to be applauded.
Dr O'Reilly said most dental patients were not referred by GPs. "Most just go to their local dentist."
Patients would only be reimbursed if the dental consultation was part of an overall treatment for a chronic health problem.
The cost of visits to psychologists, physiotherapists, chiropractors, speech pathologists and dieticians will be partially reimbursed for the first time under the revamped Medicare package.
Patients will be able to claim an $80 rebate for the initial consultation with an "allied health professional" and $35 for each of the four following visits.
However a GP must first refer patients for the treatment, which must also be part of "care plan" developed between the doctor and the allied health professional.
Australian Physiotherapy Association president Katie Mickel welcomed the move as a positive first step that recognised that "health care for Australian families is about more than doctors, nurses and drugs".
"This is a first step only. It is improving access for Australians, but only to one section of Australians those living with chronic and complex conditions," she said.