Dr. Thomas questions the impact of the federal government's Medicare levy surcharge changes on WA public hospitals. Minister McGinty acknowledges the impact, particularly on elective surgery, but highlights recent increased federal funding and promises to seek compensation for any adverse effects.

AnsweredQoN 334Legislative Assembly
Asked
18 June 2008
Portfolio
Health

QuestionView source ↗

MEDICARE LEVY SURCHARGE
I refer to the reported comments by the Minister for Health that the federal government’s proposed doubling of the Medicare level surcharge threshold for singles from $50 000 to $100 000 will put additional pressure on public hospitals in Western Australia. (1) Will the state government prepare a submission and give evidence to the Senate committee investigating the impact of this measure on public hospitals in Western Australia? (2) Has the government costed the impact of the federal government’s decision to double the Medicare levy surcharge on Western Australian public hospitals and the capacity of public hospitals to cope with additional demand for services; and, if yes, what is the impact? (3) Has the government put a formal request to the commonwealth for additional funding to compensate for the impact of this change as there is no automatic increase under the Australian Health Care Agreement, or will the state government call on the commonwealth to reconsider this ill thought out change to the Medicare levy surcharge thresholds? Mr J.A. McGINTY

AnswerView source ↗

(1)-(3) There is no doubt that the change to Medicare thresholds for tax purposes will have an impact on elective surgery lists in Western Australian public hospitals. I do not think it will have any appreciable impact on the most pressured point in our public hospital system, which is the emergency departments. Estimates of the impact are widely varying, generally speaking, reflecting the political disposition of the person making the estimate — Dr S.C. Thomas : Does the department have an estimate? Mr J.A. McGINTY : Because the estimates are so widely varying, frankly, at the moment, it is not possible to quantify the impact with any certainty. The commonwealth government’s initial figures estimated it at something less than 500 000 people, which would equate to 50 000 people in Western Australia on a per capita basis. Dr K.D. Hames : You said 60 000 people. Mr J.A. McGINTY : My estimate is that it would be somewhat higher here because of our higher-than-average rate of private health insurance, but I am just going on a per capita basis for now, so that the impact would be 50 000 people pulling out of the system. If they were young, healthy people by and large, that would have a minimal impact on our public hospital system. Subsequent estimates, generally by vested interests, have projected a somewhat higher figure of up to double that number of people as the impact in Western Australia. I do not yet know what the figure is; I do not think anyone does. What I will do is remain as part of this process to protect the interests of the Western Australian government, the Western Australian community and the Western Australian public health services. I will certainly be demanding compensation for any adverse impact, but I will do that in this context: for the first time in a decade we have a federal government putting more money into our public hospitals. We have more money courtesy of the Australian Health Care Agreement extension by one year, which represents in excess of $50 million being put into our public health system on top of what indexation would have provided. We were also given an additional $15 million for elective surgery, and an additional $13 million for capital works designed to promote greater throughput in elective surgery. We have been waiting a decade for a federal government to do something other than take money out of our public hospital system. That is all that the John Howard government was able to do, including five years ago when it took $1 billion out of public hospitals and put that money into the private health insurance system. We do not agree with that approach. We welcome the cooperative approach that exists today. I am sure that cooperation will look after the interests of the Western Australian public health system, and in particular the patients who rely on our public health system.
(1) Will the state government prepare a submission and give evidence to the Senate committee investigating the impact of this measure on public hospitals in Western Australia? (2) Has the government costed the impact of the federal government’s decision to double the Medicare levy surcharge on Western Australian public hospitals and the capacity of public hospitals to cope with additional demand for services; and, if yes, what is the impact? (3) Has the government put a formal request to the commonwealth for additional funding to compensate for the impact of this change as there is no automatic increase under the Australian Health Care Agreement, or will the state government call on the commonwealth to reconsider this ill thought out change to the Medicare levy surcharge thresholds? Mr J.A. McGINTY replied: (1)-(3) There is no doubt that the change to Medicare thresholds for tax purposes will have an impact on elective surgery lists in Western Australian public hospitals. I do not think it will have any appreciable impact on the most pressured point in our public hospital system, which is the emergency departments. Estimates of the impact are widely varying, generally speaking, reflecting the political disposition of the person making the estimate — Dr S.C. Thomas : Does the department have an estimate? Mr J.A. McGINTY : Because the estimates are so widely varying, frankly, at the moment, it is not possible to quantify the impact with any certainty. The commonwealth government’s initial figures estimated it at something less than 500 000 people, which would equate to 50 000 people in Western Australia on a per capita basis. Dr K.D. Hames : You said 60 000 people. Mr J.A. McGINTY : My estimate is that it would be somewhat higher here because of our higher-than-average rate of private health insurance, but I am just going on a per capita basis for now, so that the impact would be 50 000 people pulling out of the system. If they were young, healthy people by and large, that would have a minimal impact on our public hospital system. Subsequent estimates, generally by vested interests, have projected a somewhat higher figure of up to double that number of people as the impact in Western Australia. I do not yet know what the figure is; I do not think anyone does. What I will do is remain as part of this process to protect the interests of the Western Australian government, the Western Australian community and the Western Australian public health services. I will certainly be demanding compensation for any adverse impact, but I will do that in this context: for the first time in a decade we have a federal government putting more money into our public hospitals. We have more money courtesy of the Australian Health Care Agreement extension by one year, which represents in excess of $50 million being put into our public health system on top of what indexation would have provided. We were also given an additional $15 million for elective surgery, and an additional $13 million for capital works designed to promote greater throughput in elective surgery. We have been waiting a decade for a federal government to do something other than take money out of our public hospital system. That is all that the John Howard government was able to do, including five years ago when it took $1 billion out of public hospitals and put that money into the private health insurance system. We do not agree with that approach. We welcome the cooperative approach that exists today. I am sure that cooperation will look after the interests of the Western Australian public health system, and in particular the patients who rely on our public health system.
(2) Has the government costed the impact of the federal government’s decision to double the Medicare levy surcharge on Western Australian public hospitals and the capacity of public hospitals to cope with additional demand for services; and, if yes, what is the impact? (3) Has the government put a formal request to the commonwealth for additional funding to compensate for the impact of this change as there is no automatic increase under the Australian Health Care Agreement, or will the state government call on the commonwealth to reconsider this ill thought out change to the Medicare levy surcharge thresholds? Mr J.A. McGINTY replied: (1)-(3) There is no doubt that the change to Medicare thresholds for tax purposes will have an impact on elective surgery lists in Western Australian public hospitals. I do not think it will have any appreciable impact on the most pressured point in our public hospital system, which is the emergency departments. Estimates of the impact are widely varying, generally speaking, reflecting the political disposition of the person making the estimate — Dr S.C. Thomas : Does the department have an estimate? Mr J.A. McGINTY : Because the estimates are so widely varying, frankly, at the moment, it is not possible to quantify the impact with any certainty. The commonwealth government’s initial figures estimated it at something less than 500 000 people, which would equate to 50 000 people in Western Australia on a per capita basis. Dr K.D. Hames : You said 60 000 people. Mr J.A. McGINTY : My estimate is that it would be somewhat higher here because of our higher-than-average rate of private health insurance, but I am just going on a per capita basis for now, so that the impact would be 50 000 people pulling out of the system. If they were young, healthy people by and large, that would have a minimal impact on our public hospital system. Subsequent estimates, generally by vested interests, have projected a somewhat higher figure of up to double that number of people as the impact in Western Australia. I do not yet know what the figure is; I do not think anyone does. What I will do is remain as part of this process to protect the interests of the Western Australian government, the Western Australian community and the Western Australian public health services. I will certainly be demanding compensation for any adverse impact, but I will do that in this context: for the first time in a decade we have a federal government putting more money into our public hospitals. We have more money courtesy of the Australian Health Care Agreement extension by one year, which represents in excess of $50 million being put into our public health system on top of what indexation would have provided. We were also given an additional $15 million for elective surgery, and an additional $13 million for capital works designed to promote greater throughput in elective surgery. We have been waiting a decade for a federal government to do something other than take money out of our public hospital system. That is all that the John Howard government was able to do, including five years ago when it took $1 billion out of public hospitals and put that money into the private health insurance system. We do not agree with that approach. We welcome the cooperative approach that exists today. I am sure that cooperation will look after the interests of the Western Australian public health system, and in particular the patients who rely on our public health system.
(3) Has the government put a formal request to the commonwealth for additional funding to compensate for the impact of this change as there is no automatic increase under the Australian Health Care Agreement, or will the state government call on the commonwealth to reconsider this ill thought out change to the Medicare levy surcharge thresholds? Mr J.A. McGINTY replied: (1)-(3) There is no doubt that the change to Medicare thresholds for tax purposes will have an impact on elective surgery lists in Western Australian public hospitals. I do not think it will have any appreciable impact on the most pressured point in our public hospital system, which is the emergency departments. Estimates of the impact are widely varying, generally speaking, reflecting the political disposition of the person making the estimate — Dr S.C. Thomas : Does the department have an estimate? Mr J.A. McGINTY : Because the estimates are so widely varying, frankly, at the moment, it is not possible to quantify the impact with any certainty. The commonwealth government’s initial figures estimated it at something less than 500 000 people, which would equate to 50 000 people in Western Australia on a per capita basis. Dr K.D. Hames : You said 60 000 people. Mr J.A. McGINTY : My estimate is that it would be somewhat higher here because of our higher-than-average rate of private health insurance, but I am just going on a per capita basis for now, so that the impact would be 50 000 people pulling out of the system. If they were young, healthy people by and large, that would have a minimal impact on our public hospital system. Subsequent estimates, generally by vested interests, have projected a somewhat higher figure of up to double that number of people as the impact in Western Australia. I do not yet know what the figure is; I do not think anyone does. What I will do is remain as part of this process to protect the interests of the Western Australian government, the Western Australian community and the Western Australian public health services. I will certainly be demanding compensation for any adverse impact, but I will do that in this context: for the first time in a decade we have a federal government putting more money into our public hospitals. We have more money courtesy of the Australian Health Care Agreement extension by one year, which represents in excess of $50 million being put into our public health system on top of what indexation would have provided. We were also given an additional $15 million for elective surgery, and an additional $13 million for capital works designed to promote greater throughput in elective surgery. We have been waiting a decade for a federal government to do something other than take money out of our public hospital system. That is all that the John Howard government was able to do, including five years ago when it took $1 billion out of public hospitals and put that money into the private health insurance system. We do not agree with that approach. We welcome the cooperative approach that exists today. I am sure that cooperation will look after the interests of the Western Australian public health system, and in particular the patients who rely on our public health system.
Mr J.A. McGINTY replied: (1)-(3) There is no doubt that the change to Medicare thresholds for tax purposes will have an impact on elective surgery lists in Western Australian public hospitals. I do not think it will have any appreciable impact on the most pressured point in our public hospital system, which is the emergency departments. Estimates of the impact are widely varying, generally speaking, reflecting the political disposition of the person making the estimate — Dr S.C. Thomas : Does the department have an estimate? Mr J.A. McGINTY : Because the estimates are so widely varying, frankly, at the moment, it is not possible to quantify the impact with any certainty. The commonwealth government’s initial figures estimated it at something less than 500 000 people, which would equate to 50 000 people in Western Australia on a per capita basis. Dr K.D. Hames : You said 60 000 people. Mr J.A. McGINTY : My estimate is that it would be somewhat higher here because of our higher-than-average rate of private health insurance, but I am just going on a per capita basis for now, so that the impact would be 50 000 people pulling out of the system. If they were young, healthy people by and large, that would have a minimal impact on our public hospital system. Subsequent estimates, generally by vested interests, have projected a somewhat higher figure of up to double that number of people as the impact in Western Australia. I do not yet know what the figure is; I do not think anyone does. What I will do is remain as part of this process to protect the interests of the Western Australian government, the Western Australian community and the Western Australian public health services. I will certainly be demanding compensation for any adverse impact, but I will do that in this context: for the first time in a decade we have a federal government putting more money into our public hospitals. We have more money courtesy of the Australian Health Care Agreement extension by one year, which represents in excess of $50 million being put into our public health system on top of what indexation would have provided. We were also given an additional $15 million for elective surgery, and an additional $13 million for capital works designed to promote greater throughput in elective surgery. We have been waiting a decade for a federal government to do something other than take money out of our public hospital system. That is all that the John Howard government was able to do, including five years ago when it took $1 billion out of public hospitals and put that money into the private health insurance system. We do not agree with that approach. We welcome the cooperative approach that exists today. I am sure that cooperation will look after the interests of the Western Australian public health system, and in particular the patients who rely on our public health system.
(1)-(3) There is no doubt that the change to Medicare thresholds for tax purposes will have an impact on elective surgery lists in Western Australian public hospitals. I do not think it will have any appreciable impact on the most pressured point in our public hospital system, which is the emergency departments. Estimates of the impact are widely varying, generally speaking, reflecting the political disposition of the person making the estimate — Dr S.C. Thomas : Does the department have an estimate? Mr J.A. McGINTY : Because the estimates are so widely varying, frankly, at the moment, it is not possible to quantify the impact with any certainty. The commonwealth government’s initial figures estimated it at something less than 500 000 people, which would equate to 50 000 people in Western Australia on a per capita basis. Dr K.D. Hames : You said 60 000 people. Mr J.A. McGINTY : My estimate is that it would be somewhat higher here because of our higher-than-average rate of private health insurance, but I am just going on a per capita basis for now, so that the impact would be 50 000 people pulling out of the system. If they were young, healthy people by and large, that would have a minimal impact on our public hospital system. Subsequent estimates, generally by vested interests, have projected a somewhat higher figure of up to double that number of people as the impact in Western Australia. I do not yet know what the figure is; I do not think anyone does. What I will do is remain as part of this process to protect the interests of the Western Australian government, the Western Australian community and the Western Australian public health services. I will certainly be demanding compensation for any adverse impact, but I will do that in this context: for the first time in a decade we have a federal government putting more money into our public hospitals. We have more money courtesy of the Australian Health Care Agreement extension by one year, which represents in excess of $50 million being put into our public health system on top of what indexation would have provided. We were also given an additional $15 million for elective surgery, and an additional $13 million for capital works designed to promote greater throughput in elective surgery. We have been waiting a decade for a federal government to do something other than take money out of our public hospital system. That is all that the John Howard government was able to do, including five years ago when it took $1 billion out of public hospitals and put that money into the private health insurance system. We do not agree with that approach. We welcome the cooperative approach that exists today. I am sure that cooperation will look after the interests of the Western Australian public health system, and in particular the patients who rely on our public health system.
Dr S.C. Thomas : Does the department have an estimate? Mr J.A. McGINTY : Because the estimates are so widely varying, frankly, at the moment, it is not possible to quantify the impact with any certainty. The commonwealth government’s initial figures estimated it at something less than 500 000 people, which would equate to 50 000 people in Western Australia on a per capita basis. Dr K.D. Hames : You said 60 000 people. Mr J.A. McGINTY : My estimate is that it would be somewhat higher here because of our higher-than-average rate of private health insurance, but I am just going on a per capita basis for now, so that the impact would be 50 000 people pulling out of the system. If they were young, healthy people by and large, that would have a minimal impact on our public hospital system. Subsequent estimates, generally by vested interests, have projected a somewhat higher figure of up to double that number of people as the impact in Western Australia. I do not yet know what the figure is; I do not think anyone does. What I will do is remain as part of this process to protect the interests of the Western Australian government, the Western Australian community and the Western Australian public health services. I will certainly be demanding compensation for any adverse impact, but I will do that in this context: for the first time in a decade we have a federal government putting more money into our public hospitals. We have more money courtesy of the Australian Health Care Agreement extension by one year, which represents in excess of $50 million being put into our public health system on top of what indexation would have provided. We were also given an additional $15 million for elective surgery, and an additional $13 million for capital works designed to promote greater throughput in elective surgery. We have been waiting a decade for a federal government to do something other than take money out of our public hospital system. That is all that the John Howard government was able to do, including five years ago when it took $1 billion out of public hospitals and put that money into the private health insurance system. We do not agree with that approach. We welcome the cooperative approach that exists today. I am sure that cooperation will look after the interests of the Western Australian public health system, and in particular the patients who rely on our public health system.
Mr J.A. McGINTY : Because the estimates are so widely varying, frankly, at the moment, it is not possible to quantify the impact with any certainty. The commonwealth government’s initial figures estimated it at something less than 500 000 people, which would equate to 50 000 people in Western Australia on a per capita basis. Dr K.D. Hames : You said 60 000 people. Mr J.A. McGINTY : My estimate is that it would be somewhat higher here because of our higher-than-average rate of private health insurance, but I am just going on a per capita basis for now, so that the impact would be 50 000 people pulling out of the system. If they were young, healthy people by and large, that would have a minimal impact on our public hospital system. Subsequent estimates, generally by vested interests, have projected a somewhat higher figure of up to double that number of people as the impact in Western Australia. I do not yet know what the figure is; I do not think anyone does. What I will do is remain as part of this process to protect the interests of the Western Australian government, the Western Australian community and the Western Australian public health services. I will certainly be demanding compensation for any adverse impact, but I will do that in this context: for the first time in a decade we have a federal government putting more money into our public hospitals. We have more money courtesy of the Australian Health Care Agreement extension by one year, which represents in excess of $50 million being put into our public health system on top of what indexation would have provided. We were also given an additional $15 million for elective surgery, and an additional $13 million for capital works designed to promote greater throughput in elective surgery. We have been waiting a decade for a federal government to do something other than take money out of our public hospital system. That is all that the John Howard government was able to do, including five years ago when it took $1 billion out of public hospitals and put that money into the private health insurance system. We do not agree with that approach. We welcome the cooperative approach that exists today. I am sure that cooperation will look after the interests of the Western Australian public health system, and in particular the patients who rely on our public health system.
Dr K.D. Hames : You said 60 000 people. Mr J.A. McGINTY : My estimate is that it would be somewhat higher here because of our higher-than-average rate of private health insurance, but I am just going on a per capita basis for now, so that the impact would be 50 000 people pulling out of the system. If they were young, healthy people by and large, that would have a minimal impact on our public hospital system. Subsequent estimates, generally by vested interests, have projected a somewhat higher figure of up to double that number of people as the impact in Western Australia. I do not yet know what the figure is; I do not think anyone does. What I will do is remain as part of this process to protect the interests of the Western Australian government, the Western Australian community and the Western Australian public health services. I will certainly be demanding compensation for any adverse impact, but I will do that in this context: for the first time in a decade we have a federal government putting more money into our public hospitals. We have more money courtesy of the Australian Health Care Agreement extension by one year, which represents in excess of $50 million being put into our public health system on top of what indexation would have provided. We were also given an additional $15 million for elective surgery, and an additional $13 million for capital works designed to promote greater throughput in elective surgery. We have been waiting a decade for a federal government to do something other than take money out of our public hospital system. That is all that the John Howard government was able to do, including five years ago when it took $1 billion out of public hospitals and put that money into the private health insurance system. We do not agree with that approach. We welcome the cooperative approach that exists today. I am sure that cooperation will look after the interests of the Western Australian public health system, and in particular the patients who rely on our public health system.
Mr J.A. McGINTY : My estimate is that it would be somewhat higher here because of our higher-than-average rate of private health insurance, but I am just going on a per capita basis for now, so that the impact would be 50 000 people pulling out of the system. If they were young, healthy people by and large, that would have a minimal impact on our public hospital system. Subsequent estimates, generally by vested interests, have projected a somewhat higher figure of up to double that number of people as the impact in Western Australia. I do not yet know what the figure is; I do not think anyone does. What I will do is remain as part of this process to protect the interests of the Western Australian government, the Western Australian community and the Western Australian public health services. I will certainly be demanding compensation for any adverse impact, but I will do that in this context: for the first time in a decade we have a federal government putting more money into our public hospitals. We have more money courtesy of the Australian Health Care Agreement extension by one year, which represents in excess of $50 million being put into our public health system on top of what indexation would have provided. We were also given an additional $15 million for elective surgery, and an additional $13 million for capital works designed to promote greater throughput in elective surgery. We have been waiting a decade for a federal government to do something other than take money out of our public hospital system. That is all that the John Howard government was able to do, including five years ago when it took $1 billion out of public hospitals and put that money into the private health insurance system. We do not agree with that approach. We welcome the cooperative approach that exists today. I am sure that cooperation will look after the interests of the Western Australian public health system, and in particular the patients who rely on our public health system.

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