The Guardian July 28, 2004


Medicare Safety Net scam

The Howard Government has sent a clear message to doctors who 
are considering rorting the new Medicare Safety Net: "Go for it!".

Health Minister Tony Abbott has admitted there is little he can 
do to stop doctors wildly increasing fees to patients knowing 
that Medicare will now foot 80 per cent of the bill.

He has simply stated that it would be "against the spirit" of the 
Safety Net legislation.

Now it has been revealed Mr Abbott's department has issued a 
script for call centre staff at the Health Insurance Commission 
which clearly encourages doctors to go for broke.

The 12-page question and answer style document contains the 
following insights:

"There is no policy preventing doctors from increasing their fees 
and, if they do, this is a matter between the doctor and the patient."

Question: "Because there is an additional [Medicare] benefit ... 
wouldn't this encourage increased fees?"

Answer: "The Australian Government does not have any power to say 
what a doctor charges a patient for a service provided. If there 
is an increase in charges, this matter should be taken up by the 
patient with the doctor."

The document then goes on to detail — offering specific examples 
— of how doctors can rort Medicare and the new Safety Net to the 
fullest.

The Federal Government has refused to release figures it has 
received on how increased doctors' fees have resulted in a cost 
blowout to Medicare since the introduction of the Safety Net.

Back to index page