Commonwealth offer to offset decline in private health insurance 'pathetic'

16/6/95

The Federal Government has effectively torn-up the Medicare Agreement with a 'pathetic' offer of only a few million dollars to off-set the decline in private health insurance, Health Minister Graham Kierath said today.

Mr Kierath said the offer was an insult to Western Australians on top of the $50 million slashed from State funds at the Premiers' Conference.

The State's share of the $23 million offered by the Commonwealth - about $2.3 million - would not run Royal Perth Hospital for more than three days.

Mr Kierath said Western Australians had behaved responsibly in bearing their share of soaring health costs caused by the dramatic drop in private health insurance levels.

"Now we are being ruthlessly penalised for not following other States in shifting health costs on to the Commonwealth," Mr Kierath said.

"This is the reward we have been given.  It leaves us with no alternative but to investigate urgently ways of maximising the use of the current Medicare agreement to reduce the State's increasing financial burden."

Mr Kierath was speaking from Alice Springs after a meeting of the Australian Health Ministers' Council.

He said Federal Health Minister Carmen Lawrence had the opportunity at the meeting of demonstrating she had not forgotten the particular needs of Western Australians.

"The Commonwealth's offer under the Medicare Agreement was a chance for them to recognise Western Australia's adherence to both the letter and the spirit of the agreement - in stark contrast to the other States," Mr Kierath said.

"All they have done today with this insulting offer is kick Western Australia in the teeth.

"The State Government will not stand by and let Western Australians suffer so we will being a campaign to shift this unfair tax burden back onto the Commonwealth.

"We have behaved responsibly in the past but the Commonwealth's measly offer has left us with no alternative."

Mr Kierath said WA was suffering by $10 million per year in terms of the drop in private health insurance levels, for which the State should be compensated.

He said shifting costs from the public health system on to the Medical Benefits Scheme and Pharmaceutical Benefits Scheme would allow WA to plough $120 million per year back into patient care.

Media contact:  Brian Coulter 481 2133