Goverment subsidy of rich and middle class is one of the markers of depraved and degenerate government. Finally the government has seen fit to end the subsidisation of private health insurance for the rich and wealthy and stopping the ripping off of pensioners and low wage earners.

In my opinion if the "health insurance" providors were non-profit entities run similar to industry super funds I would have a lot less to bitch about, but the fact remains - this form of subsisation not only advantages the rich and wealthy while the poor pay for it, it indirectly puts fattens huge profits a private profit seeking business along with all the attendant directors and board members who get paid fat sums of money each year.

I absolutely refuse to accept that government should subsidse any form of insurance. I believe in fact that insurance companies are best able to find savings and efficiencies within business, when they are not subsidised by the government as they are driven by the bottom line to find profit.

Take for example the motor vehicle repair industry. The insurance companies there have brought substansial savings through best business practises. The industry wasn't subsidised by the government and like any business driven by static or small increases in incomings they look to the internal mechanisms to drive effeciancy and increase margins. Where once it might've taken $5000 to repair the front fender of a car, through cmpetitive quote bidding and improved assessmnet methodologies thoses prices were driven down to less than a $1000. Perhaps the same form of effecencies can be found within the medical industry if the private insurance companies were allowed to operate without government profit subsidsation.  It might even be found to be worthwhile for medical insurance industry to lobby government to allow thousands of 457 surgeons and dentists into OZ. Or to look to the tourism industry for partnerships to develop strategies for the increase in medical and dental tourism........

Jacqueline Maley
February 11, 2012



THE Opposition Leader, Tony Abbott, has pledged to fight government plans to means test the private health insurance rebate ''every step of the way'' but refused to commit to rescinding the measures if elected to government.   

Asked whether he would get rid of the means test if elected to government, Mr Abbott said: ''We're going to fight it. Ask me that question if we come to that situation.''   

The government this week introduced to Parliament legislation to means test the private health insurance rebate, a policy that will increase health costs for wealthier families by up to $1300 a year.   


The means testing measures have twice been rejected by Parliament, but the government is understood to have secured the numbers to finally push them through with the expected support of the crossbenchers Rob Oakeshott and Andrew Wilkie, and the Greens' Adam Bandt.   

The Health Minister, Tanya Plibersek, is selling the changes as an equity measure but the opposition says the government is just desperate to make savings to return the budget to surplus in 2012-13 as it has repeatedly promised it would.

The changes are estimated to deliver $2.4 billion to government coffers, a much-needed boost to the budget bottom line.

The opposition health spokesman, Peter Dutton, also refused to be drawn on whether the Coalition would abolish the measures if elected. ''I think we can actually do better if Labor gets this through,'' he said on Adelaide radio.

''I've actually got some exciting things to do in private health insurance to make it more popular.''

An abolition would effectively return the system to the status quo but cancel the $2.4 billion saving.

The government and opposition are also at odds over the number of people expected to drop out of private health insurance if the means test measures are passed.

According to Treasury modelling, the changes will cause 0.3 per cent of private health insurance holders, or 27,000 people, to drop out of private health altogether and fall back on the public health system.

According to the modelling, all of the drop-outs would be from the first tier of those eligible for the means test, singles on $83,000 to $96,000 a year (excluding super) and families on $166,000 to $192,000 a year.

This is because these people are on a low-enough income that they will not be slapped by the Medicare levy surcharge if they drop out of private health insurance, but a high-enough income to be affected by the means test.

But, a Deloitte report commissioned by Private Healthcare Australia estimates that 175,000 people from the ''tiers'', as in those affected by the rebate changes, will drop out of private hospital cover in the first year alone.

Over the following four years, a total of 1.6 million consumers would drop their private hospital cover, including those who are still able to claim the full 30 per cent, because overall premiums will have risen. All these consumers would be pushed onto the public hospital system.

The government disputes the report. Ms Plibersek's office said that, according to historical data, price fluctuations do not cause people to drop out of private health cover.   

The same report says that the changes will cause private health insurance premiums to rise 10 per cent above what would otherwise be expected, affecting all consumers.


Read more: http://www.theage.com.au/opinion/political-news/abbott-silent-on-coalition-plans-for-health-means-test-20120210-1skut.html#ixzz1m1CMUiEM

Emma wrote on Feb 11^th, 2012 at 3:47am:



Excuse me!!! So will my medicare levee be lowered to your level. Can i pay the same as you or am I going to be discriminated against because i got a university education and a well paying job.... you are NO better than me.

I paid over $20,000 tax last year. Can I pay the same tax rate as you so that i can make my own decisions on private insurance.

I am sick of watching women being paid to have children, women being paid to stay at home, kids getting family benefits, mothers getting family payments, parents getting subsidized for child care.... I worked and raised my family without any of this money.

And you complain  while I get a poor $500 for my health care.... a health care that IF I DO NOT have I will have to pay an extra medicare levee.

Get out and get a job lady and pay for your own family because I don't see why I have to pay for you....... I don't go to work for you to it on your backside!!!

I am not anywhere near convinced, the $80,000 for singles and $150,000 for families represents 'richness'. At least in Sydney It clearly doesn't.

By the time the Government gets through with taxing a person on $150,0000, then if that person has a $400,000 mortgage the median price for a house in Sydney) and then has to pay the bills that everyone else has to pay, I strongly debate that there would be much left over for a family.

There is a saying, 'everyone is broke on their own level' you can take that saying to the bank.

If a person has worked their guts out to get a good salary I say good luck to them. There are too many knockers in this society in which success is a mortal sin.

My son in law pulls $150K, he is clever, educated and works his guts out for it. Because of his expertise people on the ladder below him are employed.

Screw this kill the rich philosophy. It is typical Commie Labor thinking from a Government, that has run out of ideas even before they had one decent one.

All Commie Julia and Labor do is find new ways to screw you into the ground.

Don't worry, we will all be in the same boat when these ars...oles bring in their 'fresh air' tax!

See how many will be whingeing then.

Its the Medical Providers that scam both the Insurances and the Patients!!!

This is why you don't see 'them' advertised on Television.

One Provider made many millions of dollars profit. Enough to buy 20 more Hospitals, but they still 'borrowed' equipment, etc from the Public Hospital and paid across the board rather than the cost of courier and postage direct.

Trust me, the Doctors were great but even they hated working for the Private Providers who just ripped off everyone and anyone.

Don't you just love it that under the Laborites a person earning $80,000 is classed as wealthy!!!
No not wealthy, but by the same token not doing too badly either.  In any case it starts at $83,000, does it not?.   

yes Dooley-- you have the gist of it thats for sure.

Bring on the legislation!! and  make these oh so comfy whinging middle to high income earners pay a much FAIRER share than they have under Lib -sourced legislated tax cuts.
Truly, in what used to be called an 'egalitarian society' (Australia) .. we now have a society that is divided against itself.
Where is the solution.?

Well.  as well as this rip-off rebate being abolished, we should also exempt pensioners from GST.

Always should have been an equity issue.  People who do not earn enough money to pay income tax  STILL pay 10% tax on most of their transactions. Talk about grabbing from the poor and giving it to the rich.

Where's Robin when you need him?