GPs want better method of indexation of Medicare rebates for GP consultations Australia

Main Category: Public Health
Article Date: 16 Jun 2004 - 13:00 PDT

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AMA (Australian Medical Association) Vice-President, Dr Mukesh Haikerwal, said today the AMA and other GP groups will lobby the Federal Government to adopt a new method of indexation to determine the real value of Medicare Benefits Schedule (MBS) rebates for GP consultations.

The AMA cites the current inadequate indexation method - Wage Cost Index (WCI5) - as a significant contributor to the current GP workforce shortages in Australia and a major reason patients are paying higher out-of-pocket costs to see their doctors.

Dr Haikerwal said WCI5 is a flawed method of indexation, which has ensured that MBS rebates have not kept up with the real costs of providing high quality medical services in Australia.

"The AMA commissioned Access Economics to examine the inadequacies of WCI5 and to recommend other more realistic indexation options," Dr Haikerwal said.

"Access identifies previous examples where Governments have injected higher funding into the system to catch up with the cost of general practice, especially at politically sensitive times.

"These were:

-- The introduction of vocational register in 1989

-- The implementation of the so-called 'blended payments' remuneration systems, in conjunction with a severe 'half-indexation regime in the early 1990s

-- The GP Memorandum of Understanding in 1997

-- And the above-indexation increase in GP rebates in the run-up to the 2001 Federal election.

"We urge the Government to again consider a new indexation method, but not as a once-off or catch-up initiative.

"We need genuine reform to make MBS rebates reflect reality. If we don't act now, the workforce shortages will get worse and patients will be forced to pay higher and higher gaps - eating up any incentives in Medicare Plus.

"The AMA, the Australian Divisions of General Practice (ADGP), the Royal Australian College of General Practitioners (RACGP) and the Rural Doctors Association of Australia (RDAA) are united in this effort," Dr Haikerwal said.

All the GP groups are calling on the Government to implement a sustainable indexation arrangement for general practice.

The Access Economics Report is attached.

CONTACT: John Flannery (02) 6270 5477 / (0419) 494 76

Indexation of MBS Rebates for GP Consultation Items PDF 325.34 kb