Concern over Medicare funding provided for in the Federal Budget

13/5/98

Health Minister Kevin Prince has welcomed the 1998/99 Commonwealth Budget as being financially responsible and fundamentally sound, but has expressed concern over the Medicare funding provided for in the Budget.

"The Commonwealth Government having brought the Budget outcome from a deficit of $10 billion three years ago into surplus of $2.7 billion this year is a significant achievement for which the Commonwealth should be congratulated," Mr Prince said.

"However, as the Prime Minister said after the Premiers' Conference, the Budget contains Medicare funding in accordance with its Medicare funding offer.

"That offer has been rejected by most States and Territories because it is grossly inadequate."

Mr Prince said the Commonwealth claimed health spending would increase by 15% over the five years, but after taking into account population growth, ageing and the extent to which funds can be used for hospital service delivery, the increase is only around 1% nationally in real terms.

"For Western Australia, the offer provides for a decrease of $19 million in Hospital Funding Grants and in total only a $3 million increase in 1998/99 compared to the grants the State would have received if the current Medicare Agreement had continued," he said.

"If the Commonwealth continues providing funding in accordance with its funding offer, then the State will stand to lose $149 million in Hospital Funding Grants over the next five years compared to a continuation of the current Agreement."

The Minister said Medicare aside, the Budget did contain a number of new initiatives that were very worthwhile.

"The extension to other States of the free influenza vaccination program being trialed in Victoria is particularly welcome," Mr Prince said.

"I think that Western Australia can take some credit for this decision, as we have strongly lobbied the Commonwealth to introduce the scheme here.

"However, it is disappointing that the Commonwealth announcement does not provide for the free vaccinations to be provided this winter.

"Other initiatives in relation to public health, Aboriginal health, Seniors Health Cards, veterans and aged care should also significantly advance the health care of Australians."

Media contact: Mark Thompson on pager 9482 4648