Fed: Abbott denies higher health rebates an election bribe

AAP General News (Australia)
08-23-2004
Fed: Abbott denies higher health rebates an election bribe

Eds: Inserting dropped word "higher" in intro



CANBERRA, Aug 22 AAP - Health Minister Tony Abbott has rejected suggestions that offering
higher private health insurance rebates to one million older Australians is an election
bribe.

He insists that any time is a good time to help Medicare.

Prime Minister John Howard and Mr Abbott yesterday announced the 30 per cent private
health insurance rebate would rise to 35 per cent for people aged from 65 to 69 years
and to 40 per cent for people aged 70 and over.

The rebates will begin in April 2005 at a cost of $445.5 million over four years if
the Senate agrees to let them go ahead.

Mr Abbott told ABC radio today the new scheme would be good for the public health system,
saving older Australians between $100 and $200 per year on their private health insurance.

"About one million people - that is to say, people who are over 65 and who currently
hold private health insurance - will get the immediate benefit," Mr Abbott said.

He rejected any suggestion the announcement, alongside last week's increase in the
bulk billing rebates for doctors in outer metropolitan and regional centres, was a cynical
vote-grabbing exercise.

"The government has done an enormous amount in health over the past nine or ten months
and the thing about health is that it's a work in progress," Mr Abbott said.

"We have an excellent system - an excellent Medicare system (and) an excellent private
system - the two systems complement each other, but it's always a good time to put in
place even better policy."

Labor has argued that the plan does nothing to help older Australians who cannot afford
private health insurance, but Mr Abbott said about one million people with incomes of
less than $20,000 a year had chosen to take it up.

"The measures that the government has put in place to make private health insurance
more affordable have obviously facilitated that," he said.

Australian Democrats health spokeswoman Lyn Allison said yesterday the money the government
proposed to put into the increased rebates would be better spent on reducing waiting times
for surgery in public hospital.

Senator Allison said she did not believe the measure would lead to more older people
taking out private health cover.

AAP db/it

KEYWORD: REBATE ABBOTT (REPEATING)

2004 AAP Information Services Pty Limited (AAP) or its Licensors.